Here’s how a drop in consumption will lead to a rise in prices

In a significant reduction, French gas consumption drops below 400 TWh in 2023. To find such a decline, we have to go back to the 1990s. The reasons are multiple, GRTgaz explains.

France has recorded a significant reduction in gas consumption through 2023. The French have not consumed so little since the 1990s. French gas consumption falls by 11.4% in 2023 and falls below 400 TWh, reflecting moderation and new behavior in terms of use »On February 27, the manager of the French gas transport network said in a press release.

Thus, the third consecutive decline in national gas consumption has been recorded since 2021. It is 381 TWh for the year 2023, 430 TWh in 2022 and 474 TWh in 2021. From 2021 to 2023, consumption is reduced by 2%.

Reasons for reduction in gas consumption

In detail, in climate-corrected data, public distribution (household, tertiary, small industry) consumption fell by 6.5% to 253 TWh in 2023 compared to 2022. GRTgaz notes that the same decline observed between 2021 and 2022 (-6.2%). According to the gas transmission network manager, this reduction “ The cumulative effects of a milder climate are explained by sustainability efforts and reduced use of gas to generate electricity. “

In addition, the consumption of large energy-intensive industrial customers, which decreased by 7.4% to 103.8 TWh in 2022 after a decrease of 11.5%, is explained by the fact that some industrialists, with the increase in prices, have chosen the option of “. Cited by AFP According to Ms Sandrine Meunier, General Director of GRTgaz, other types of energy, such as electricity, have also influenced consumer behavior with the onset of price increases observed from 2021.

Mechanical price increases visually?

The reduction in gas consumption, however, poses the risk of a price hike with a revision already planned for July 1, 2024. The latter (by 27%), is attributed to the revaluation of tariffs for using the public gas network. distribution, is Mainly explained by the overall reduction in gas consumption, explains the French scale-up i changed.

It must be said that the reduction in consumption is also generated by the number of subscribers which is shrinking with the energy transition. This is when the “Maintenance costs for the gas network infrastructure in France remain fixed and therefore must be distributed among an increasingly small number of consumers, leading to this mechanical increase in gas prices”

The assistant explains.

At the same time, GRDF is asked to be installed “Investments required to integrate biomethane into the gas network while maintaining the required level of security”. This will definitely lead to further revision of network tariff. and gas prices mechanically.