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ENERGY

France says ready to deliver gas to Germany

French President Emmanuel Macron said on Monday that his country was ready to deliver gas to Germany this coming winter should the energy crisis make such a move necessary.

France says ready to deliver gas to Germany
Gas transport and pipeline network operator Gascade in Lubmin, northeastern Germany on August 30th, before Russian gas giant Gazprom announced the Nord Stream pipeline would remain shut (Photo by Odd ANDERSEN / AFP)

This would allow Germany to produce more electricity which, in turn, would allow Germany to contribute electricity to the  French power grid during peak hours, he told reporters after a video call with German Chancellor Olaf Scholz.

“We are going to complete the gas connections that will allow us to deliver gas to Germany,” Macron said.

Both Germany and France are scrambling to replenish gas reserves after Russia curtailed deliveries in retaliation for western support for Ukraine in its war with Russia.

Germany is more dependent on Russian gas than France, which generates most of its electricity in nuclear power stations.

The French government has repeatedly warned that companies and retail users needed to cut down on their energy use next winter, with electricity outages a possibility if the winter is unusually cold.

On Monday, Macron said “the answer is up to us” and French people needed to cut their energy consumption by, for example, by using air conditioning and heating a “bit less than usual” to avoid power outages.

Indoor temperatures in the winter should be kept to no more than 19C, he said.

Macron also said he was in favour of joint gas purchases by EU governments which he said would make them cheaper.

France, he added, would meanwhile back any move by the European Commission to set a price limit on gas bought from Russia and delivered by pipeline.

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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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