How are energy prices set in France?

For a long time, France had a state monopoly on gas and electricity. Two national businesses – EDF and GDF – distributed their respective forms of energy at regulated prices. Things changed with the opening up of the gas and electricity supply markets to competition.

Today, in France there are two types of tariff:

  • regulated tariffs: offered only by the traditional suppliers (EDF, Engie and local distribution businesses). They are set by the economy and energy minister, in agreement with the Energy Regulation Commission (CRE). The regulated gas tariffs are expected to disappear by the summer of 2023.

  • Market offers: prices are set freely by the energy suppliers. They can offer a fixed tariff, which will not change over the duration of the contract, or an indexed tariff which will vary according to the regulated tariff.

Since the end of 2021, to support businesses and households, a number of support mechanisms have been put in place by the State to limit gas and electricity price rises. These include a “tariff shield”.

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