Bloomberg News

GDF Suez Allowed to Raise Gas Supply Charges 8%, Regulator Says

March 09, 2012

A unit of GDF Suez SA (GSZ), operator of Europe’s biggest natural-gas network, will be allowed to raise fees for distributing the fuel by 8 percent, the regulator said.

The increase by the GRDF unit, which sought an 18.4 percent jump, is applicable from July 1 and takes into account a drop in 2011 volumes and bolstering of network security, Commission de Regulation de l’Energie said in a ruling on its website.

It works out to a 2 percent increase in regulated rates for consumers using the fuel for home heating, said the regulator, which also oversees power charges. For the years to 2015, it will allow increases of 0.2 percentage points above inflation.

The gas rate, reviewed every four years, was increased by 5.6 percent from July 1, 2008.

GDF Suez, the monopoly for household gas supply in France until July 2007, plans to cut its share of profit from Europe amid the region’s debt crisis, curbs on French regulated tariffs and Belgian taxes on nuclear power. The company is seeking to double sales of liquefied natural gas to emerging markets by 2020 as it expands into faster-growing economies.

To contact the reporter on this story: Tara Patel in Paris at tpatel2@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


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