The French Gas Association (AFG) published on Thursday, in a context of unprecedented energy crisis, recommendations to better cope with soaring gas prices in France and, more broadly, to secure the European market in case of a total cut-off of Russian gas.
For French companies in difficulty, the two proposals put forward by the interprofessional union of the gas industry are already included in the aid package announced at the end of October by the government for a total of 12 billion euros.
AFG’s recommendations include extending the tariff shield to SMEs and very small businesses and committing the main electricity suppliers to offer at least one deal to their business customers.
“Now, what we will have to watch is the ease of access to these various aids, and that the price increases are still acceptable,” explains to AFP the general delegate of the AFG Thierry Chapuis.
On the household side, the AFG would like to extend the exceptional “fuel oil” energy vouchers of 100 or 200 euros to off-grid gas, or to other energies such as butane-propane or wood used for heating.
Finally, the gas association recommends granting VAT reductions to people who opt for gas composed of half biomethane.
At the European level, Thierry Chapuis says he is in favor of the temporary control of prices wanted by the Member States on the TTF market, the reference for European gas transactions.
While France was only 17% dependent on Russian gas before the energy crisis, taking advantage of other sources of supply, Europe was 45% dependent on it. Long-term “structural” measures will be needed at the European level, according to Chapuis.
European countries must continue to diversify their sources of supply but also return to long-term gas supply contracts that are less indexed to short-term contracts – which are subject to price volatility – to avoid a “spiral effect”.
Then, we need infrastructures that are sufficiently “sized” and “robust” to adapt to different gas supply scenarios and also accelerate the development of renewable or low-carbon gases.
Mr. Chapuis is not really worried about the coming winter, but the winter of 2023-2024 is likely to be “more complicated”, especially in terms of building up reserves, in the face of “reduced or even zero Russian gas flows”.
“If we have to help our neighbors and therefore fill our storage less, there could be a European balancing act with the gas-for-electricity deal requested by Emmanuel Macron that could last,” he says.
