Key Benefits:
In accordance with Law n ° 2003-8 of 3 January 2003 on gas markets and The electricity and the public energy service and the decree of 16 June 2005 on the selling prices of fuel gas sold from public distribution networks, the CRE was seized for opinion on 20 October 2005 by the Minister of The economy, finance and industry, on the scale laid down by Gaz de France for the evolution of its prices for the sale of natural gas in public distribution on 1 November 2005. This schedule is appended to this notice.
1. Proposed by Gaz de France
Gaz de France proposes an increase in the energy share of its natural gas sales tariffs of 0.445 cEUR/kWh.
2. Comments from CRE
2.1. Application of the procedure laid down by the order of 16 June 2005
Article 7 of the decree of 16 June 2005 on the sale prices of fuel gas sold from public distribution networks provides
: The Operators shall submit, at the latest twenty-one days before the date of each revision, their proposals for scales to the Ministers responsible for the economy and energy. A copy of this proposal shall be transmitted in parallel to the Energy Regulatory Commission.
Within five working days of the tabling, the Ministers shall enter into the Energy Regulatory Commission Operators.
After receiving the opinion of the Energy Regulatory Commission, the Ministers may request the operators concerned to amend their proposals for scales to take account of the opinion of the Regulatory Commission Energy.
Operators are required to file within three working days from the date of receipt of the request to amend their new proposals for scales. "
The CRE recalls that it is for the operators concerned, pursuant to the order of 16 June 2005, to submit, before each tariff movement, a draft scale to the administration, in accordance with the conditions and the deadlines laid down Section 7 of this Order.
2.2. Tabled by Gaz de France
The current legislation and regulations provide that changes in the rates for the sale of natural gas in public distribution must reflect the costs and, in particular, the Procurement costs.
Article 7 of Act No. 2003-8 of 3 January 2003 provides that:
" The rates for the sale of natural gas to non-eligible customers are defined according to the intrinsic characteristics of the supplies and Costs associated with these supplies. They cover all of these costs, excluding any subsidy for eligible clients. "
In addition, sections 3 and 4 of the June 16, 2005 order have the following:
" Art. 3. - Changes in distributed gas tariffs reflect:
-changes in gas supply costs;
-changes in charges outside the supply cost.
" Art. 4. - Changes in gas supply costs are reflected in a formula deposited with the Ministers responsible for the Economy and Energy and the Energy Regulatory Commission. These costs are correlated:
-in a basket of oil products quoted in Rotterdam in US dollars per tonne;
-at the euro exchange rate against US dollar.
" The calculation of supply costs is carried out, prior to each Date of tariff change, from the average of the rates and rates referred to in this section for a period of six months ending one month prior to the date of the tariff movement. "
Compared to the values taken into account during the movement of July 1, 2005, the price of heating oil in the wholesale market in Rotterdam increased by 21 % in US dollars per tonne, that of BTS increased by 33 % in US dollars by Tonne. In addition, the euro has depreciated by 5.6 % against the US dollar.
The CRE has verified that the application of the formula for the evolution of the supply costs of Gaz de France, as provided for in Article 4 of the decree of 16 June 2005, leads well to An increase in the energy share of the tariffs of 0.445 cEUR/kWh.
This uniform increase in the energy share of the tariffs leads to different percentage increases on each of the tariffs. For the main rates of the Gaz de France scale, one obtains the following increases, calculated in relation to the rates in effect at 31 October 2005:
You can consult the table in OJ
No 9 of the 11/01/2006 text number 65
On average, since 1 January 2005, the increase in the non-tax price of fuel for heating an individual will have been about 19 % for gas and about 50 % for fuel oil Home.
2.3. Commercial Discount
Concomitantly to the CRE's reference to the evolution of the scales on November 1, 2005, Gaz de France announced that it wished to consent " Throughout the winter a commercial discount equivalent to 30 % of Subscription for specific gas-heating customers ".
The Government justified this rebate by the difficulties that would result, for a number of households, by the increase resulting from the application of the June 16, 2005 intervenes at the beginning of the heating period.
The CRE recalls that regulated tariffs for the sale of gas to non-eligible customers are of a public nature, as is the result, in particular, of the provisions of Article 1 of the Decree of 20 November 1990 regulating the prices of fuel gas sold from public transport or distribution networks. In these circumstances, suppliers of natural gas shall not, without disregarding the law, charge or cause to be paid to these customers a sum different from that resulting from the strict application of the tariffs adopted in accordance with the law
In application of this remission, it is therefore necessary, in any event, to amend the order of 16 June 2005 to include the measures which Gaz de France intends to implement and the modalities chosen to compensate them at a later date. The scales of Gaz de France, approved by the ministers responsible for the economy and energy, must faithfully reflect the terms of the amended order.
3. Non-nationalized Distributors
The CRE was not entered by the Minister of Economy, Finance and Industry on the schedules of non-nationalized distributors. It points out that the application by the non-nationalised distributors of new scales, without the implementation of the approval procedure provided for by Decree No. 90-1029 of 20 November 1990 and the order of 16 June 2005, would deprive them of basic rights
It recalls that Article 6 of the decree of 16 June 2005 provides that the variations defined in Article 3 of the same order, which lead to the increase of 0.445 cEUR/kWh proposed by Gaz de France, " In addition, if applicable, for each Non-nationalized distributor, as mentioned in section 23 of the Act of April 8, 1946, the variations due to the specific evolution of its supply costs and expenses excluding supply costs. "
4. CRE Notice
The scale proposed by Gaz de France for the evolution of its natural gas sales rates for public distribution on November 1, 2005, is consistent with the existing regulations.
It is not the same, With respect to a regulated tariff, proposed trade measures to mitigate, during the 2005-2006 winter period, the impact on particular customers using the gas of the increase resulting from the application of the order of 16 June 2005.
In the event that the measures envisaged in order to alleviate the increase for the particular customers heating the gas would be implemented, it is, in any event, essential that the order of 16 June 2005 be amended in Consequence and that the scale of Gaz de France is brought into conformity with the amended order. These measures will have to be completed by the end of winter 2005-2006 and be the subject of catch-up.
Done at Paris, October 27, 2005.
For the Energy Regulatory Commission:
The President,
J. Syrota
