French Gas Price Increase: Political Parties Propose Solutions as Voters Worry About Affordability
The recent increase in gas prices of almost 12% between the two rounds of legislative elections in France could become a contentious issue. This hike, announced in March, is primarily due to the revaluation of gas network maintenance costs and the rebound in gas prices on the markets. As a result, the average annual gas bill for French people will increase by 124 euros, from 1,060 euros in June to 1,184 euros in July.
The Energy Regulatory Commission (CRE) noted that this increase is mainly associated with a 4-year revaluation of gas transmission costs to cover maintenance and modernization expenses for gas infrastructure and the integration of green gas into the system. Despite this rise in prices, CRE pointed out that the July price remains lower than January after the end of subsidy mechanism protecting households from excessive increases during energy crisis.
Political parties are proposing various measures to address rising energy costs. Macronist Renaissance party aims to create an energy renovation fund while National Rally suggests lowering VAT rate on gas, electricity and fuels. New Popular Front (NFP) plans to lower VAT rates for energy companies and freeze prices for basic necessities but implementing these measures may require negotiation with Brussels to ensure compliance with European regulations.
The issue of increasing energy costs is likely to remain a key talking point during legislative elections as purchasing power and affordability are critical concerns for voters. Each political party has proposed different strategies to address rising energy prices and ease burden on consumers. The outcome of elections could shape future energy policy in France and determine how government responds challenges increasing energy costs.
