Energy – Gas prices expected to rise by almost 10%
The gas price for individuals is expected to rise 9.5% on 1 April, Wednesday said a source familiar with the matter in accordance with the application of a new method for calculating their evolution. The Commission for Energy Regulation (CRE) is expected to meet Thursday to consider a proposal to this effect of GDF Suez, the source said, confirming a report in the daily Le Figaro. CRE Suez and GDF have declined comment.
Under the new rules for setting regulated rates, intended to make developments more predictable, the government sets an annual schedules determining the framework within which the price of natural gas. GDF Suez is then responsible for proposing increases or decreases in rates within this framework.CRE approves or rejects the proposal submitted by the private group through a binding opinion.
The role of the CRE is limited to verifying the correct application of the formula for calculating the cost of supply of GDF Suez, which takes into account the level of crude oil prices, oil and exchange rates. The proposed tariffs are regulated mainly by GDF Suez (ex-Gaz de France) but also by 16 local suppliers, such as Gaz de Grenoble, Energy Services Occitan, the Municipal Board of Réole, etc..