Gas Price in France: how much does gas cost in 2021?

The price of gas in France fluctuates monthly in relation to the supply costs of the historical supplier Engie (formerly GDF) from international producers. However there is not one but several gas prices, as each gas supplier is free to offer its customers their set rates. In addition to that, within the same offer, the price of gas is not the same for all French households as the price per kWh of gas is billed at different rates depending on the consumption class and the tariff zone of the property. We breakdown the gas prices in France and highlight what you need to consider to help you find the best gas offer available for your profile.

The price of gas in France

There are 2 types of gas prices in France:

1. The regulated price: set by the State via the regulated gas tariff offered by the historical supplier Engie (formerly GDF Suez)
2. The market rate: a competitive price per kWh of gas defined freely by each alternative supplier (competitors to Engie). These rates can be either indexed (follow the regulated tariff) or fixed (a locked-in price for the contract period) depending on the offer.

The price of gas in France changes each month and can fluctuate both upwards and downwards. Changes in the regulated gas tariff for gas are announced following the decisions of the Energy Regulatory Commission (CRE). Similarly, market rates for gas which are indexed to the regulated rates, are subject to change each month (unless on a fixed-price offer). As gas prices are determined according to the consumption class of the home and the tariff zone in which it is located, the price of gas can vary between consumers.

End of TRVs for gas! It is no longer possible to subscribe to a regulated gas tariff offer since November 2019. TRVs are set to disappear completely in 2023, after which, the gas price in France will be a market price, therefore it is important for all natural gas consumers to prepare a health-check on their gas rates against other market-based offers.

The rise of gas prices in 2021

99% of gas in France is imported and is directly impacted by demand and supply factors across the European and world markets. Since 2021, rising demand for gas and tight supply, in particular due to the production of electricity which requires the use of gas-fired power stations, has caused an unprecedented lift in gas prices. Since October 2021, the price of gas has exploded with a record spike of + 12.6% (excluding tax). At the same time, the cost of supplying gas (Engie's supply costs) has risen by 0.99 € / MWh. All of these factors are contributing to the soaring price of gas.

How choose the best gas offer in 2021

So which gas offer should you choose given the evolution of gas prices in France, and the recent market volatility and price spikes more broadly? To determine the best gas supply option for your situation, consider which of the following best matches your priorities:

1. Save money thanks to advantageous tariffs: reduce your gas bill by comparing gas suppliers' kWh gas price and standing charges.
2. Protect yourself from future price increases: compare fixed-price offers which lock-in the per kWh gas price for the duration of the contract, and in some cases, the standing charge. This makes it possible to avoid increases in gas prices during this period.
3. Be supported by quality customer service: If reliable customer service and support across multi-channels (telephone, email, webchat etc.) is something you look for, it's worth comparing gas providers' customer service reviews (particularly if looking for English-speaking support).
4. Support renewable energy: If your ecological impact is a priority, compare offers for biogas (or biomethane) which is more environmentally friendly than natural gas, since it emits no greenhouse gases.

The Price of Natural Gas in France: How does France compare with the rest of Europe?

Natural gas is billed according to the amount of energy consumed, measured in kWh. The average price of natural gas in France is €0.070 / kWh, which is slightly below the average for Europe (€0.073 / kWh). Gas prices vary widely between countries inside the European Union: the Swedes pay on average €0.113/kWh whereas the average price of natural gas in Romania is €0.031/kWh. This is largely due to differing costs of transporting gas and by political choices of gas taxation.

As residential gas markets are open to competition in France, you have a choice of energy supplier and natural gas plan, which means that the price you pay for your energy may be lower or higher than this average.

Average Natural Gas Bill in France

About one-third of households in France use natural gas for heating, hot water and/or cooking. Of the households connected to gas, the average French household consumes approximately 11 800 kWh of natural gas per year, making the average natural gas bill in France approximately €826 euros per year, or about €68.83 per month.

However, keep in mind that your natural gas bill in France can vary depending on several factors:

• Your gas usage: do you use natural gas for cooking, hot water, surface heating, or all three? Households that use natural gas for cooking only average approximately 621 kWh for natural gas consumption, whereas households that use natural gas for cooking + hot water + surface heating average 14 800 kWh per year.
• Insulation: older homes in France tend to be poorly insulated, but home energy performance has improved greatly in recent years: homes built or renovated after 2006 are often twice as energy-efficient as homes built before 1975, and homes built on or after 2012 can be up to four times more energy-efficient
• The size of your home: a larger home generally means a larger area to heat, and therefore a bigger bill
• Household members: the number of people that make up the household, along with their habits (i.e. to what extent they spend time at home) can also have an effect on the amount of natural gas your household consumes
• Season & weather: natural gas bills when the temperatures drop
• Your region: if you consume more than 6000 kWh of gas per year, you may find that the price of gas is slightly different depending on your region (zone tarifaire). There are 6 zones tarifaires in France
• Your supplier: while Engie (ex. GDF Suez) remains the largest natural gas supplier in France, alternative suppliers can offer more competitive rates than the regulated tariffs. Find out more about other energy suppliers in France.

The price of natural gas in France, broken down

Gas Supply

This covers the costs of procuring natural gas, along with the costs of providing customer service (billing, operating customer service centres, etc). The exact proportion that supplies represent in the cost of your natural gas depends on your choice of supplier. You may be able to save money on the supply portion of your bill by switching suppliers or plans.

Transport, Distribution & Storage

Delivery costs cover the costs of transportation, distribution, & storage. While these charges are incorporated into the bill that you receive from your supplier, these charges are passed directly to the delivery network operator (GRDF). Delivery charges for natural gas are the same for all customers, regardless of who their supplier may be.

Taxes

Three different taxes are applied to natural gas in France:

1. CTA (Tariff-based contribution to Delivery): Used to finance specific pension rights of employees of the gas and electric industries.
2. TICGN (Domestic Consumption Tax for Natural Gas): applied to domestic customers to finance government. On the 1st of January 2016, this tax has merged with two other taxes: Special Solidarity Tariff Contribution (CTSSG, which finances a "social tariff" for gas and the National Mediator for Energy's budget) and CPSG (Contribution to the Public Service for Gas, which contributes to purchasing biogas).
3. VAT: applied to the subscription rate and the CTA (5,5%), and to the kWh price and TICGN (20%).

What Does a Gas Bill Look Like in France?

You will see three main types of charges on your gas bill in France:

1. Monthly Subscription Charge (Abonnement): this is a fixed monthly amount that the energy supplier charges to cover the fixed costs of delivering natural gas (which are passed along to GRDF) and providing customer service. The subscription charge amount depends on the yearly consumption class and the offer chosen.
2. Consumption Charges (Consommation): the total amount depends on your monthly consumption and the rate you pay (per kWh) for your natural gas supply. GRDF measures your consumption twice a year, which forms the basis for the calculation of your monthly consumption
3. Taxes (Contributions et taxes liées à l’énergie)

Natural Gas Price Plans in France

Regulated Tariff

The regulated tariff (tarifs reglementés) is set by public authorities, and changes every month. This rate is only available with the historic supplier Engie (formerly GDF-Suez). Engie is the largest natural gas supplier for residential customers in France. However, many competitive suppliers offer lower rates and subscription charges than the regulated tariff, meaning that you can save money by comparing offers.

Indexed Prices

Indexed price plans offer a percentage discount off of the pre-tax regulated tariff for energy consumption, which guarantees savings compared with the regulated tariffs. As these rates are pegged to the regulated tariff, they will fluctuate based on changes to the regulated tariff. Keep in mind that some suppliers offer discounts for a limited time (e.g. one or two years), so make sure to keep track of when your plan's discount ends so you can switch to another plan and/or supplier (energy contracts are without commitment in France, so there is no penalty for switching).

Fixed Prices

Fixed-price plans guarantee the same rate for your energy consumption throughout the duration of your plan, allowing you to stabilize your gas budget. Contract periods can range from one to several years, and you will not be penalized for switching plans if you notice that natural gas prices are falling. Keep in mind that the "fixed" price is pre-tax: if taxes increase, the overall amount you pay for natural gas will also increase, even if you have signed up for a fixed-price plan.

Some suppliers offer additional discounts for customers subscribing to both electricity and natural gas plans. Dual fuel plans can save you money and can be more convenient (as you receive one bill for both energy supplies).

Examples of natural gas offers

Offer	Pre-tax Subscription Price	Pre-tax kWh Price	More information
Classic gas offer	Same as the regulated tariffs	5% discount on the regulated tariffs	09 87 67 37 93 or request a Free call back
Gas Reference 2 years	Standing charge fixed for 2 years	Market price fixed for 2 years	09 87 67 37 93 or request a Free call back
Regulated tariffs for gas	Regulated tariffs	Regulated tariffs	Contact Engie

Last update: October 1, 2023

Interested in a competitive pricing offer? Contact a Selectra English-speaking adviser on 09 87 67 93 or get a free callback.