While wholesale energy prices are reaching record highs, many French people are scrutinizing their contracts with concern. Le Figaro takes stock of the most frequently asked questions.
In view of the explosion in wholesale electricity prices in France for 2023, which reached new records on Friday, passing the bar of 1000 euros per megawatt hour in France, many French people are worried about their energy bills. If the “tariff shield» on electricity and gas is still in force, it will not last forever. What raise a multitude of questions among households: how to change supplier? How to return to the regulated sales tariff (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?
You should first know that the specificity of a contract subject to regulated sales tariffs (TRV) on electricity or gas is based on the action of the public authorities. It is the State which, with the support of the Energy Regulation Commission (CRE), sets and regulates these tariffs, which are then proposed by the incumbent operators, EDF for electricity and Engie for gas.
Alternative providers, on the other hand, are free to offer whatever tariffs they wish. Over the past few months, your alternative gas or electricity supplier may have notified you of an upcoming price change in your bill. In reality, “he has the right to modify his prices, provided he notifies the customer at least 30 days in advance“, explains Caroline Keller, head of the information and communication service of the National Energy Ombudsman, who advises individuals to “keep an eye on their mailbox“. Even customers who benefit from an offer at a rate indexed to the TRVs must be careful. Because some suppliers, such as Ohm Energy or Mint Energy, have in recent months unilaterally changed the indexation of their contracts.
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Even if it is mandatory, communication is not always very transparent with some suppliers. “Often, their communication is very ambiguous and does not allow customers to understand the price increase to which they are exposed”, denounced the general manager of the same mediator Frédérique Feriaud, in November at the Figaro.
Additional condition, a price change is only applicable by the supplier if the customer has entered into a contract of indefinite duration. Otherwise, it is forbidden to change the pricing during a fixed term contract.
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And in case of contract renewal?
Contracts at the regulated sales price and those indexed to the TRVs are necessarily of indefinite duration. On the other hand, all other contracts (fixed or variable price) can be for a fixed term. In this case, it is necessary to be very vigilant at the time of renewal. “If your contract ends and your supplier offers you a new offer, you have to look carefully, because at the time of renewal, prices can be very high.», with en guard Caroline Keller.
For example, the Spanish electricity supplier Iberdrola recently invited all its French customers whose contracts expire in October to “supply elsewhere”. And this, to avoid subjecting them to exorbitant price increases. “If they don’t react, prices will double or triple for them“, said a spokesman to AFP.
How to change energy supplier?
In the case of a price increase imposed by your supplier, you may be tempted to change supplier to find a better offer elsewhere. For this, the National Energy Mediator strongly advises to play the competition and to use a comparator. The independent public authority has its own tool. The consumer association UFC-Que Choisir 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 on the size of the accommodation, the power of the meter or even its annual energy consumption and the offer best suited to your situation will be put forward. Once the contract has been signed, the new supplier takes care of terminating your old contract, without any termination and administrative fees being applied.
What if my supplier wants me to cancel my fixed price contract?
Having a fixed price contract in these times of crisis represents a boon for the consumer, the cost of the invoice not being impacted by the current increases in energy prices. For the supplier, on the other hand, this represents a significant loss. The latter may therefore be tempted to convince you to terminate your fixed-price contract in exchange for financial compensation of a few tens of euros. Some, such as E.Leclerc Énergies, Oui Energy or Bulb, have even recently withdrawn from the market, leaving consumers on the sidelines.
Don’t let yourselfimpress with the prospect of vendor market exit“, advises the CLCV. He is indeed under an obligation to honor his contract andserve the consumer at the set price», this until the end of the contract. In the event of an exit from the market, the consumer must then be offered compensation covering at least the difference between the current offer subscribed to and an equivalent offer from another supplier. By taking into account a differential of 30 to 50% with current energy prices, the amount of the damage can rise over one year to “several hundred eurosaccording to the consumer association. It therefore advises not to accept the supplier’s offer without appropriate compensation and to file a testimonial on its website.
Should I be worried if my supplier goes bankrupt?
Many alternative suppliers are experiencing difficulties linked to the rise in energy prices and may have to cease their activity. This is the case of Hydroption, which went bankrupt at the end of last year. In the event that your electricity supplier were to go into compulsory liquidation, your contract would in all cases be automatically switched to the emergency suppliers designated by the Ministry for Ecological Transition: EDF and the local distribution companies (ELD), depending service areas. Indeed, the Energy Regulatory Commission states that “any consumer whose supplier fails will automatically switch to the backup supplier corresponding to him for the time he chooses an offer adapted to his needs».
There is therefore no risk of a power cut. Your contract would switch to the regulated tariff and you would be completely free to turn to another supplier. For gas, on the other hand, no emergency supplier has yet been appointed because no bankruptcy has yet been reported. The Energy Regulatory Commission organized a call for tenders to appoint some, which ended on July 31. Its result should therefore be announced soon.
Is it more interesting to subscribe to a market offer?
Since the opening of the market to competition in 2007, new entrants have multiplied market offers in order to offer an alternative to the TRVs of incumbent suppliers. According to the Energy Regulation Commission, as of March 31, approximately 40% of sites were in market supply, including 31% from an alternative supplier. These offers can be offered at a fixed price – which allows the cost of energy to be frozen for several months or years – or based on indexation on regulated tariffs or on market prices.
In normal times, contracts indexed to the markets can be interesting and make it possible to achieve significant capital gains against the prices regulated by the public authorities. On the other hand, they remain very volatile and subject to variations, which poses a problem in these times of crisis. “When market prices were low, it was interesting. Today, many consumers contact us, bewildered by the amount of their bill“, reports Caroline Keller. 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“Warns Caroline Keller. Priority should therefore be given to offers at the regulated tariff or indexed to these TRVs. “There are still cheaper offers than TRVs, but not by many. In electricity, there are only two“, emphasizes Caroline Keller.
How to return to the regulated tariff?
For electricity, it is quite possible to subscribe to a regulated tariff 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, which will terminate your old contract and offer you the rates regulated by the public authorities.
For gas, on the other hand, the TRVs will disappear on 1is July 2023 and are therefore in extinction since November 20, 2019. Since this date, it is therefore no longer possible to return to a gas supplier offering regulated prices. However, it is always possible to turn to other market offers, at any time and free of charge.
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Who is protected by the government price shield?
In October 2021, to protect the French from soaring energy prices, the government set up a “tariff shield» on gas and electricity. In concrete terms, the price of gas was completely frozen – it still is – at its October 2021 level, while the increase in the price of electricity was limited to 4% during its annual increase in February.
This measure only concerned households subject to regulated gas and electricity tariffs. That is to say the majority of households with electricity – as of March 31, 2022, 64% of residential sites were at the TRV for electricity, according to the CRE -, but not for gas – only 26% of residential sites were at the TRV for gas on March 31 2022. Households whose contract mentions a tariff indexed to the regulated tariffs also benefit from this protection.
Initially limited to individuals and small condominiums, the gas shield was also extended to large condominiums and social housing last February.
How do I know if I have a regulated rate contract?
To find out if your contract is at the regulated rate, you have to scrutinize your invoices. For gas, if the logo “Gas Regulated Tariffappears there, it means that your supply contract is in TRV. For electricity, the inscription “regulated tariff» must also be explicitly mentioned on the invoices.
How will prices evolve in the future?
Households with regulated gas and electricity prices have nothing to worry about, at least until the end of the year. The tariff shield, which was originally due to end in June, has indeed been extended until the end of 2022. But after? The government wants to be reassuring, although it concedes that price increases are to be feared.
Read alsoThe executive’s scenarios in the face of soaring energy prices
«We are not going to let energy prices explode“, promised Prime Minister Elisabeth Borne at the Parisian last Sunday, when the Minister of the Economy Bruno Le Maire assured the day before that the increase would be “contained” in 2023. “We will maintain mechanisms to cushion energy price increases. And we will take specific measures to support the most vulnerable“, specified Elisabeth Borne.
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