Fixed or indexed rate? We explain how to navigate the jungle of gas prices, at a time when prices are soaring

When it's time to turn the heating back on, it's also time to look into your bill to avoid unpleasant surprises. The benchmark selling price of natural gas, which increased by 6.6% on Sunday November 1, has jumped 42.3% since the start of the year due to the war in the Middle East. It stands at 194.90 euros including tax per megawatt hour (MWh), compared to 136.88 euros/MWh in January.

This reference tariff established by the Energy Regulatory Commission (CRE) has consequences on the prices offered by suppliers. As with electricity, there are currently two main types of offers: those at a fixed price (four million households) and those at an indexed price (six million households). The first guarantee a fixed price on gas throughout the period of commitment with your supplier.

Conversely, the seconds vary each month depending on the CRE benchmark price. There are also offers whose prices are not indexed to public references or are left to the discretion of the supplier, but they are not recommended by the national energy mediator. Fixed price offers, "a reassuring choice" In a context of great turbulence due in particular to the war in the Middle East, fixed price offers constitute "a reassuring choice", explains the consumer association Que Choisir ensemble on its site.

“Between market fluctuations and the increase in the benchmark price, we advise households to subscribe to a fixed price during the crisis,” explains Clarisse Berger, Energy and housing project manager for the organization, to franceinfo. However, she points out that there are two types of fixed price offers: those whose price is guaranteed for the entire duration of the contract, and those where certain components (such as the delivery price) can modify the total cost. In all cases, changes in taxation can cause prices to vary.

Also read What are the solutions to lower your gas bill? Outside of periods of crisis, these fixed price offers are often slightly more expensive, which pushes some to choose another option. However, they currently appear more advantageous, as Franceinfo noted on the national energy mediator's comparator.

The fixed rate offers from EDF and TotalEnergies were, for example, cheaper than their indexed offers. All offers are without obligation "All customers who signed fixed price offers at the start of the year are rather protected against the rise in gas prices", confirms Nicolas Goldberg, energy expert at Colombus Consulting and Terra Nova. He sees indexed offers as risky bets since prices “can rise at any time”.

On the other hand, a drop in prices will be directly reflected in the bill. “We see that there is a lack of knowledge among households about suppliers and even more about the offers offered,” notes Clarisse Berger. She reminds that all offers are without obligation.

Machine-translated from French