The Council of State, the highest administrative court in France, has cancelled a government decision taken in September 2011 that froze gas regulated tariffs from 1 October 2011 to 31 December 2011. Under the gas price formula, gas prices should have increased by 10% in October 2011, though the government decided to freeze household prices and to limit to less than 5% industrial prices. In its decision, the Council of State also allowed gas companies to pass the October-December 2011 price increase on final customers on a retroactive way.
This decision was taken whereas the French government decided on 9 July 2012 to limit to 2% (i.e. the inflation rate) the increase in regulated gas and electricity prices to be applied as of 21 July 2012. The regulation authority, the Commission de Régulation de l'Energie (CRE), will have to be consulted on the gas price. GDF Suez, which demanded a 4.1% increase in gas prices, is considering an appeal to the Council of State.