France • 🌿 Progressive

Those least able to switch fuels will pay the most to stay

Those least able to switch fuels will pay the most to stay

France's CRE warns gas network maintenance costs could rise up to 3.5% annually in real terms by 2050 as fewer consumers share fixed infrastructure expenses.

The households that cannot afford to replace their gas heating systems will be the ones financing an increasingly expensive network for those who already left. According to the French outlet reporting the CRE document, France's Energy Regulatory Commission projects that gas infrastructure maintenance costs could rise between 0.2% and 3.5% per year in real terms through 2050. The mechanism is straightforward: fewer users, same infrastructure, higher individual cost. 🔹 What happened: The CRE released a long-horizon report assessing the future of French gas networks through 2050. The report identifies that declining gas consumption — driven in part by decarbonization policies encouraging switches to heat pumps and other alternatives — reduces the number of network subscribers. Fixed maintenance costs, however, do not decline at the same rate, leading to a projected annual real increase of 0.2% to 3.5% per user. 🔹 Why it matters: Low- and middle-income households that have not transitioned to alternative heating are the ones most likely to remain on the gas network. As wealthier consumers exit, the cost burden shifts to those with fewer options. The CRE report does not propose targeted social protections or subsidy mechanisms for this group, leaving the distributional impact unaddressed. 📌 EPM Take: EPM recently covered who decided French unemployed workers get nothing extra in 2026. This CRE report adds a parallel pressure point: the same households absorbing welfare cuts may also face compounding energy bills as the gas network loses its cross-subsidy base. A projected increase of up to 3.5% per year in real terms sounds modest annually — but over 25 years, on a fixed or declining income, it is not. The green transition has visible beneficiaries. Its hidden costs tend to land on people who never had a seat at the policy table.
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