8 per cent of the gas tariffs intervened yesterday may 1

With a month delay on the schedule, an average increase of 5.8 per cent of the gas tariffs intervened yesterday, may 1. As he announced in late March, the Government therefore met to the letter the commission recommendation of Durieux, who had advocated a revision of this magnitude to "precisely" rising supply costs supported by gas of France.

It has, however, superbly ignored the negative opinion delivered Friday evening by the Commission for regulation of energy (CRE). For his first sensitive file, the new President of the CRE, Philippe de Ladoucette, indeed resumed his remarks before his arrival: as he had suggested last month, the regulator has indicated to Bercy that in his eyes, the proposed rates (0.21 centime per kWh) increase not impacted not fully the evolution of the cost of supply of GDF.

In this, the speech of the CRE joined that of gas of France, which pushed for a tariff increase of 8.1. Without going as far, Regulation Commission estimated that the new tariff should both reflect the increase in the costs incurred by SFM between 1 October and 31 March (reference period for tariff revision may 1), and catch up with the increases which had been deprived since the fall of 2004. A commitment by the State under the contract from public service signed with the gas operator. If this commitment had been respected, the average increase of 1 may would not have been 5.8 and 6.2 according to the CRE.

Critics of the CRE

The difference will appear may be anecdotal in the eyes of consumers. It is much less for the company, which now figure EUR 810 million revenue losses related to the rate increases not granted since the month of November 2004. Alone, the delay since April 1, date which should have in principle intervene the last rate movement, will be increased to 60 million lack of SFM. More than ever, the group account therefore on further rises of tariffs by the end of the year. Nothing says that the Government will be ready to grant him. Making conclusions, March 21, the commission Durieux is is refused to indicate the way which could be caught increases including SFM has not benefited. She however clearly ruled for a new tariff policy, which would see tariffs vary only once a year July 1 and not all quarters. A rate hardly compatible with the catch-up hoped by gas of France, but just be endorsed by Bercy in order published Saturday in the "Official Journal".

In his view, the CRE critical advance this new tariff schedule: "by removing the reference to the frequency of review of the rates of gas of France, observed, the draft decree reduces the transparency and visibility of the device for the actors of the market". Under these conditions, the risk exists that a significant increase of the costs of supply is not reflected in the tariffs and the profitability of the activity of provision is degraded, or even become negative. "In the eyes of the regulator,"the possible coexistence of market and prices regulated tariffs not reflecting the costs constitutes a serious brake on the development of alternative suppliers ".