The French Ministry of Energy has announced a 2.4% increase in regulated gas prices as of 1 January 2013 and the extension of social energy tariffs to an additional 830,000 consumers (from about 400,000 consumers to more than 1.2 million).
This decision on tariffs follows a ruling by the State Council in November 2012 that a 2 percent increase in consumer gas rates on 1 October was not enough to allow GDF SUEZ to cover costs. Energy Ministry asked GDF SUEZ to find ways to lower its supply costs, in particular by renegotiating its long-term gas purchase contracts to better reflect changes in prevailing in market prices.
The government is considering modifying the price calculation formula, to raise by up to 30% the share of market prices, which are significantly lower than long-term contract prices. Moreover, it is mulling a new law to extend social tariffs to 8 million customers.
GDF SUEZ announced a €185m lost in 2012 due to gas tariff freezes imposed by successive governments.