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What would France do if Russia cuts off the gas supply?

French Economy Minister Bruno Le Maire has said that the country is making "preparations" should Russia decide to cut off the gas supply.

French Economy Minister Bruno Le Maire announced that France was preparing for the possibility that Russia might cut off the gas supply.
French Economy Minister Bruno Le Maire announced that France was preparing for the possibility that Russia might cut off the gas supply. (Photo by Tobias SCHWARZ / POOL / AFP)

France and Germany are preparing for a cut in Russian gas deliveries, France’s economy minister said on Thursday, as Russian President Vladimir Putin warned Moscow will turn off the taps for those who refuse to pay in rubles.

“On the sanctions against Russia, we will not accept the payment of gas in any other currency than stated in the contract,” said Bruno Le Maire following talks in Berlin with his German counterpart Robert Habeck.

“There could be a situation tomorrow in which there is no longer any Russian gas. It’s up to us to prepare for these scenarios and we are preparing.” 

On Tuesday the head of France’s main gas distribution network, Laurence Poirier-Dietz, said the government may be required to pass a load-shedding decree, in which parts of the country have gas cut off on a rotating basis to ration supply. Hospitals, schools and retirement homes would be spared. 

“We have enough gas coming from other sources and supplies to get by until next winter,” she said in an interview with Sud-Ouest

“The question will be asked about how to fill reserve stocks during the summer.” 

French newspaper Les Echos report that filling the reserve stocks would cost in the region of €10 billion. 

France has the option of importing gas from other countries like Norway, Libya or Azerbaijan. It also has its own supplies of subterranean gas in the northern département of Pas-de-Calais and a number of methane plants, the biggest of which is in Seine-et-Marne. 

“We can try to stimulate investment and double production capacity,” said Carole Mathieu a researcher with the French Institute of International Relations, during an interview with France Info. “That would bring us to 40 billion cubic metres at the European level, but Russia produced 155 billion cubic metres last year. There is work to do.”

The French government said that load-shedding would be a last resort. 

Earlier in March, Prime Minister Jean Castex announced that the government would seek to end French dependency on Russian gas and oil supplies by 2027. 

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ENERGY

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.

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

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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