Are you sure?

France to raise rates to access gas grid

France's energy regulator CRE said that rates for gas companies to access the grid would rise from January 1, 2009 to finance costly investments.

GRTgaz, the grid owned by GDF Suez, will raise its rates by an average of six percent while the Total-owned grid TIGF will increase its rates by 10%, the CRE said in a statement.

“The rates of both transporters are increasing because of the amount of investment needed, but also because of the rise in energy prices and the increasing need for improved security of networks,” the CRE said.

Investments will include works to ease congestion between the northern and southern zones, the reinforcement of networks and interconnections with Spain and Belgium.

The regulator added that alongside the new rates, the pooling of the French northern, eastern and western gas balancing zones from January 1, 2009, reducing the zones from five to three, will permit competition of different gas sources to take place within the newly merged northern zone.

“The new rates will lead to a general simplification of the conditions to access transport networks,” the CRE added. (Reuters)