French transmission system operators (TSOs) GRTgaz and Teréga have launched the single domestic gas market zone, the Trading Region France (TRF). Starting from 1 November 2018, France will have a unified wholesale gas price, the PEG price, bringing an end to differences between the northern and southern markets. The two zones will also share common market rules that have been agreed on following consultations with gas shipping companies.
France initially had 8 separate market zones in 2003, which were reduced to 5 in 2005, 3 in 2009 and 2 in 2015. The TRF marks the culmination of major investments in gas infrastructure and the implementation of new offers co-developed with market players and the French Energy Regulatory Commission (CRE). In total, €872m of investments were necessary for adapting the gas transport infrastructure for the deployment of the TRF, out of which €720m were invested by GRTgaz and €152m by Teréga.
The development of the TRF is expected to facilitate access to the most competitive gas sources for all consumers and interconnect the French market with the main European markets. With the strengthening of the French gas transmission network and the creation of a single market area, the risks of congestion between the North and South of the country are slated to diminish, thus increasing security of supply across the country.