Understanding and Managing the Impact of Rising Benchmark Gas Prices in December 2023

2023-11-12 08:48:55

The benchmark price of gas, which has never fallen, will increase once more on December 1, 2023! An increase which will have repercussions on the bill of the 12 million households which use this essential energy, especially in these winter times.

What is the benchmark gas price?

The benchmark prices, which vary depending on the market and which are published monthly, reflect the amounts borne by suppliers on the wholesale gas market. In other words, the publication of the benchmark tariff allows everyone to know the price at which suppliers buy the gas which they then distribute to consumers.

Thus, suppliers, who do not sell at cost, are obliged to increase their prices to compensate for the reduction in their profits due to the increase in the benchmark price. On the consumer side, the publication of the benchmark price makes it possible to compare offers from different suppliers and choose the one offering the best price.

How to choose your supplier?

To compare gas prices, it is necessary to take into account the profit margin that the supplier applies on the retail resale price, that is to say the one that the consumer pays on their bill. You must therefore choose a distributor who charges a reasonable and not excessive margin. However, the price of gas is not the same everywhere, and it does not only depend on the benchmark price on the market. The geographic location of households is also an important factor, because transporting gas also has a cost.

As an indication, in December, a household which uses gas for cooking, heating and the production of domestic hot water should pay an average rate of nearly 127 euros per megawatt hour. As for those who are favored by their geographical location, they will pay on average 123.9 euros. It remains to be seen what new prices will be offered by suppliers with this increase in perspective for the month of December. As a reminder, the increase exceeded 21% between July and December for so-called small consumer households.

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