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Gaz de France: New Rates for Natural Gas on January 1st, 2008
added: 2007-12-31

The tariffs of natural gas for public distribution will increase by an average of 0.173 euro cent/kWh on January 1st, 2008. This is the first change in rates since May 2006, whereas the price of oil has risen by 33% since that date, reaching 93 $/b in November 2007.

Natural gas tariffs will increase less than originally planned. Indeed, the company had initially asked the authorities to approve an increase of 0.261 euro cent/kWh in accordance with the public service contract between Gaz de France and the French State, as well as the order of June 16, 2005.

As a result, this increase will not allow Gaz de France to pass on the full burden of its supply costs in the rates charged for natural gas. The negative impact on the Group’s operating income is estimated at approximately €90 million for the first quarter of 2008.

Gaz de France is attached to the principle that gas tariffs should faithfully reflect the costs incurred by the company. This is why the Group intends to finalize as rapidly as possible the new public service contract with the French State and draw the consequences of the decision handed down by the French Council of State on December 10, 2007.

For customers using natural gas for heating, these new rates will lead to a 4% increase in their gas bills, or an additional charge of €2.15 per month for a flat and of €2.90 for a house*.

Against a background of expensive energy worldwide, natural gas remains the most competitive source of energy for heating, and the natural gas rates in France are among the lowest throughout Europe.

*A flat with an average consumption of 12,000 kWh/year and a detached house with an average consumption of 17,000 kWh/year.


Source: Business Wire

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