Energy Regulatory Commission (CRE) announces further reduction in benchmark gas prices for the month of March. This downward trend, already seen in January and February, spells good news for households whose energy bills saw a significant increase in electricity prices on February 1.
Benchmark prices will fall by 5% in March
CRE recommends a reasonable rate per kilowatt hour (kWh), setting the price at 0.09291 euros including tax for households using gas mainly for heating, and 0.11585 including tax per kWh for those using gas for heating, hot water and cooking. The rate of the euro is fixed. . This decrease of about 5% compared to February may be reflected in the bills of consumers.
CRE explains, however, that the monthly benchmark price reflects an average estimate of costs for suppliers, including wholesale market supply costs and non-supply costs such as commercial, transportation and storage costs, as well as supplier remuneration.
Will gas prices continue to fall?
Currently, the Energy Regulatory Commission finds that wholesale gas prices are too low. However, despite this good news, more than 10 million households using gas faced additional taxes earlier in the year. The increase led to an increase in the all-tax inclusive (TTC) variable share in January 2024, mainly due to changes in the internal tax on consumption of natural gas (TICGN).
Fortunately, this increase was largely offset by a decrease in the tax-free portion. Thus, as of March 1, 2024, the variable portion including tax has decreased by 5.59 euros per megawatt hour (MWh) compared to February. From December 1, 2023, the variable part, including tax, is reduced to 11.14 euros per MWh, as indicated in an official press release by CRE.
Unfortunately, this drop will not last, as there are plans to significantly increase gas distribution tariffs by summer. ” Taking this development into account, CRE’s current estimates assume an average benchmark price of around 120 Euro/MWh (including tax) for July 2024, which is around 6 Euro/MWh lower than the average price for December 2023 (including announced increases on infrastructure). prices) », underlines the CRE.
