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Gas bills to rise by over 11% in France in July

For households that use gas for heating, cooking or hot water, bills will go up again in July as regulators increase tariffs.

Published: 11 June 2024 10:17 CEST

Gas bills to rise by over 11% in France in July

The flame of a gas stove in France. (Photo by ALAIN JOCARD / AFP)

Starting on July 1st, gas bills will increase for the 10.5 million households in France which either heat with gas or use it for cooking and hot water.

France’s energy regulatory commission (Commission de régulation de l’énergie, or CRE) announced on Monday that the estimated increase for the benchmark price in June to July would be 11.7 percent.

The price increase is related general market trends, but it also has to do with French consumption of gas dropping.

“We are witnessing the gradual exit from fossil fuels, with some consumers switching to electricity. In the meantime, those who remain on gas are fewer in number, but they must bear the costs,” Jacques Percebois, an economist with a speciality in energy, told Ouest France.

In France, the price one pays for gas includes the cost per kilowatt of consumption, taxes and the cost of delivery, with the base rate set by the regulator.

How much will my bills increase by?

The average household in France consumes 1,123kWh of gas per month, giving them a current monthly bill of around €124.

With the price increase, this bill will go up by about €14.80, with a little over half of that owing to the cost of distribution and about a third due to the increase in prices on wholesale markets, according to Ouest France’s calculations.

For those only using gas for cooking and hot water, the average monthly bill would go up from €20 to €23.30 a year.

Ultimately, the exact amount your bill will go up by will depend on your supplier, although companies tend to have broadly similar tariffs.

Will the cost keep going up?

Experts expect the benchmark price to increase again by approximately 10 percent in August. However, it is also worth noting that expected prices dropped between February and June, according to MoneyVox.

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Reader insights: Do you really need to carry cash in France?

According to the Banque de France, as of 2022 half of all payments in France were made using cash, a notable drop from 68 percent in 2019 prior to the Covid-19 pandemic.

In the Euro zone overall, cash was used in 59 percent of all transactions, compared to 79 percent in 2016.

On top of that, France saw the number of total ATMs decrease by 5,000 between 2018 to 2021, with more expected to be closed down in the coming years, according to RMC.

The trend is clear – people are moving from cash to card, but in France, whether or not you need to carry cash with you can depend on where you live and the type of item you want to purchase.

The Local spoke with readers to hear their thoughts on whether or not cash is still necessary in France, and several noticed that the shift toward cards occurred during the Covid-19 pandemic.

READ MORE: REVEALED: The problems foreigners have getting started in France

Overall, 63 percent said that they still “definitely need to have some cash [on their person]” while only 28.6 percent said they do not carry cash and that the bank card was enough.

Of the readers who said it is necessary to carry cash, most mentioned it as a back-up to card payments, rather than the primary mode of payment.

One reader Carrie said “I like using my card and relying less on cash. That said I always carry some small notes and change for those small purchases / CB minimum spends.”

Another respondent, William, said “[Cards] are convenient but there are times that the system may not accept cards so cash is required.”

As for Adam in Paris, he said “I generally try to have €10 to €20 in my wallet for emergencies, but will use card pretty much exclusively.

“In Paris there are often minimums for cards, ranging from €1 up to €5 or more, in boulangeries, boucheries and traiteurs mostly. I understand it, as the merchants are being hit with card fees, so a small amount doesn’t really work out well for them. The one thing I always need cash for though is the vide-greniers!”

Location

Geography was an important factor. Several readers mentioned the rural-urban divide when it comes to shops with card readers, with bank cards being accepted in most locations in large cities and cash being preferred by small vendors in the countryside.

One reader, Barbara, said she carries cash “out of habit, as in rural France there is often a minimum charge. In Paris no, but sometimes stopping for a coffee, cash is easy and one can leave a few centimes tip.”

Sandra, in Hautes-Alpes, told The Local that in her area “there are lots of small providers who don’t want to register for a card reader. Therefore they accept cash or French cheques. So it’s advisable always to carry either.”

One reader Carrie said that across the board she carries cash for “bakeries, fruit and vegetable, and markets.”

Plus, she also brings it along for “cafés and taverns (more outside the big cities and in smaller towns and villages). The French do seem to love their coins. More food stores and cafes seem to have introduced CB minimum spends.

“In rural villages and towns we tend to use cash for small purchases like coffee or a cheeky wine. I know some drinks places state up front ‘No CB’ (no carte bleu, or bank card).”

A reader from rural Brittany said: “Smaller local shops like the bakery or butcher don’t accept cards for small purchases (less than €10 to €20).”

Nick in Nice said that “there is often a supposed €5 minimum, but only in smaller places or bars. They will take the card if you really have no cash though.”

While another reader in Nice said “I’ve been told several times that the “machine is broken” only to miraculously work if I say I don’t have cash after a meal. Sometimes I can get a discount if I offer to pay in cash.”

Card minimums

Almost half of the respondents mentioned the importance of carrying around cash in the off-chance the shop requires a minimum payment for smaller purchases, usually of around €5 to €10.

Barbara Edmonds in Maubourguet, in Hautes Pyrénées, said she carries cash primarily for “local shops such as the boulanger and butcher that have minimum card levels of €5.

“Also some market stalls only take cash and the hairdresser only takes cash or cheque.”

Fenella in southern France explained the perspective of a business owner. “I own a bookshop in Antibes. We have a card minimum of €5. It’s not worth taking card for less because of the bank charges we pay, even on contactless.”

The type of purchase

Regardless of geography, there were a few types of purchases that several readers mentioned consistently needing cash for. These tended to be lower cost items, or those purchased from small or independent shops or stands.

Almost half (22) readers mentioned needing cash for the marché (market) stalls, as well as vide-greniers (second-hand markets).

Emile in Nice said “only for market do I ensure that I have cash,” and Fenella said “Most market traders here don’t take cards.”

Tipping was a popular reason to carry some coins or cash, as one reader Tad explained, “I like to tip in cash and it’s a safer bet for taxis too. I like having both options.”

READ MORE: How to avoid taxi scams in Paris

Nine readers mentioned needing small amounts of cash for the boulangerie (bakery), while several others mentioned needing it for the local butcher.

Four readers said their doctors, particularly GPs, require cash for payment. “I carry cash. Doctors do not want to pay for card payment charges and neither do I. Cash it will be,” one reader, Carol said.

However, since the advent of the online booking system Doctolib, many doctors have begun accepting card payments, and those registered with the site will soon be part of a new update that allows for payment online via one’s personal account.

READ MORE: France rolls out online payments for doctor’s appointments

As for other cash-only locations, three other readers mentioned bringing cash for small-town hairdressers.

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