Gas, electricity. What you need to know about your contracts to overcome the energy crisis

With wholesale electricity prices in France expected to explode in 2023, hitting new records on Friday to top 1,000 euros per megawatt hour in France, many French are worried about their energy bills. If “tariff shield” is still valid for electricity and gas, it will not be forever. What causes many questions among households? how to change provider How to return to regulated sales rate (TRV)? What if my supplier goes bankrupt? Le Figaro answers all your questions.

Does my supplier have the right to change the price of my contract?

First of all, you should know that the specificity of the contract subject to regulated sales tariffs (TRV) for electricity or gas is based on the actions of public authorities. It is the State, with the assistance of the Energy Regulatory Commission (CRE), that sets and regulates these tariffs, which are then offered by the incumbent operators, EDF for electricity and Engie for gas.

Alternative providers, on the other hand, are free to offer the rates they want. In the past few months, an alternative gas or electricity supplier may have notified you of an upcoming price change on your account. In fact, “it has the right to change its prices, provided that it notifies the customer at least 30 days in advance,” explains Caroline Keller, head of information and communications at the National Energy Ombudsman, who advises individuals.follow their inbox“. Even customers availing indexed offer for TRVs should be cautious. Because some suppliers, such as Ohm Energy or Mint Energy, have unilaterally changed the indexation of their contracts in recent months.

Even if it is mandatory, communication is not always very transparent with some providers. “Often their communication is very ambiguous and doesn’t allow customers to understand the price increases they are being exposed to.” in November, the general manager of the same intermediary, Frederic Ferio, was sentenced to Figaro.

An additional condition: the price change is only applicable by the supplier if the customer has signed a contract for an indefinite period. Otherwise, it is prohibited to change the pricing during the term contract.

And in case of contract extension.

Adjusted sales price contracts and contracts indexed to TRVs necessarily have an indefinite term. On the other hand, all other contracts (fixed or variable price) can be for a fixed period. In this case, it is necessary to be very careful at the time of renewal. “If your contract ends and your provider offers you a new offer, you should look carefully, as the prices at the time of renewal can be very high.“Caroline Keller warns.

For example, Spanish electricity supplier Iberdrola recently invited all its French customers whose contracts expire in October to “supply elsewhere”. And this, so that they are not subjected to excessive price increases. “If they don’t respond, prices will double or tripleAFP spokesperson said.

How to change energy supplier? Who is the cheapest supplier?

If your provider raises prices, you may be tempted to switch providers to find a better deal elsewhere. For this, the National Energy Ombudsman strongly recommends playing the competition and using a comparator. Independent state power has its own tool. The UFC-Que Choisir consumer association also offers its own. It is also possible to go, for example, to the online comparator Selectra.

All you have to do is fill in basic information about the size of the living space, the capacity of the meter or even its annual energy consumption, and the offer that best suits your situation will be presented. Once the contract is signed, the new provider takes care of terminating your old contract without incurring termination and administration fees.

What if my provider wants me to cancel my fixed price contract?

In this time of crisis, having a fixed price contract is a boon for the consumer, as the invoice value will not be affected by the current energy price increases. On the other hand, it is a significant loss for the supplier. Therefore, the latter may be tempted to convince you to break your fixed-price contract in exchange for a financial compensation of several tens of euros. Some, such as E.Leclerc Énergies, Oui Energy or Bulb, have even recently exited the market, leaving consumers on the sidelines.

Don’t let yourselfimpress sellers with the prospect of exiting the market,” advises CLCV. He really has a duty to honor his contract andserve the consumer at a set price“, until the end of the contract. In the event of market withdrawal, the consumer must be offered compensation that covers at least the difference between the current offer and an equivalent offer from another supplier.

Taking into account the 30 to 50% difference in current energy prices, the amount of damage can increase within a year to “several hundred eurosaccording to a consumer association. Therefore, it is recommended not to accept the offer of the supplier without adequate compensation and submit a testimonial on its website.

Should I worry if my supplier goes bankrupt?

Many alternative suppliers are struggling with rising energy prices and may be forced to shut down. This is the case of Hydroption, which went bankrupt at the end of last year. In the event that your electricity supplier has to go into compulsory liquidation, your contract will in all cases be automatically transferred to the emergency suppliers appointed by the Ministry of Ecological Transition, EDF and local distribution companies (ELD) depending on the service areas. Indeed, the Energy Regulatory Commission notes that “any customer whose supplier fails will automatically switch to the backup supplier that matches them when they choose the offer tailored to their needs.“.

Therefore there is no risk of power outage. Your contract will switch to a regulated tariff and you will be completely free to switch to another provider.

Regarding gas, on the other hand, an emergency supplier has not yet been appointed, as the bankruptcy has not yet been filed. The Energy Regulatory Commission organized a competition to appoint some of them, which ended on July 31. Hence its result should be declared soon.

Is it more interesting to subscribe to a market offer?

Since the opening of the market in 2007, new entrants have multiplied market offerings to offer an alternative to incumbent providers’ TRVs. According to the Energy Regulatory Commission, as of March 31, approximately 40% of the sites were supplied in the market, including 31% from an alternative supplier. These offers can be offered at a fixed price that allows you to freeze the cost of energy for several months or years, or based on regulated tariffs or market price indexation.

In normal times, market-indexed contracts can be interesting and provide the opportunity to achieve significant capital gains over government-regulated prices. On the other hand, they remain highly volatile and subject to fluctuations, which poses a problem in these times of crisis. “When market prices were low, it was interesting. Today, many consumers contact us confused about their account balanceCaroline Keller reports.

In the current context, the National Energy Ombudsman recommends avoiding these market indexed offers. As for the fixed price offers, they are today.very very expensive“Caroline Keller warns. Therefore, priority should be given to regulated tariff or indexed offers to these TRVs. “There are still cheaper offerings than TRVs, but not by many. There are only two in electricityCaroline Keller emphasizes.

How to return to regulated tariff?

• It is quite possible to subscribe to a regulated tariff for electricity if your current market offer does not suit you. In this case, the principle of reversibility applies. All you have to do is make a request to EDF, who will resolve your old contract and offer you the rates regulated by the government.
• TRVs for gas on the other hand will disappear on the 1st^eh July 2023 and therefore disappear from November 20, 2019. From this date it is therefore no longer possible to return to a gas supplier offering regulated prices. However, it is always possible to refer to other market offers at any time and free of charge.

Tariff shield. what is it:

In October 2021, to protect the French from rising energy prices, the government created “tariff shield» on gas and electricity. Specifically, the gas tariff was completely frozen – it still remains – at the level of October 2021, while the increase in the price of electricity was capped at 4 percent during the annual increase in February.

This measure applied only to households subject to regulated gas and electricity tariffs. That is, most households with electricity, as of March 31, 2022, 64% of dwellings were in the TRV for electricity, according to CRE, but not for gas, only 26% of dwellings were. TRV for gas in 2022. on March 31. Households whose contract specifies a tariff indexed to regulated tariffs also benefit from this protection.

Initially limited to individuals and small condominiums, the gas shield was extended to large condominiums and social housing in February last year.

How do I know if I have an adjustable rate contract?

To find out if your contract is set at an adjustable rate, you’ll need to scrutinize your invoices. For gas, if the logo “Regulated gas tariffappears there, it means your supply contract is in TRV. For electricity, the inscription “adjustable rate” must also be clearly stated on the invoices.

How will prices develop in the future?

With regulated gas and electricity prices, households have nothing to worry about at least until the end of the year. The tariff shield, which was originally supposed to expire in June, has indeed been extended until the end of 2022. But then? The government wants to be reassuring, although it admits that price increases are to be feared.

“We are not going to let energy prices explodePrime Minister Elizabeth Bourne promised parisian Last Sunday, when the Minister of Economy Bruno Le Maire assured the day before that the growth will be “contained” in 2023.We will maintain the mechanisms to control energy price increases. And we will take concrete measures to support the most vulnerable classElizabeth Bourne noted.

PODCAST: – Is the tax fair? The Philo Moment by Azilise Le Coret

Listen and subscribe on your favorite audio platform