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France braces for electricity tariff hike

France electricity tariff news

Power prices in France will jump by 10% in August, President Emmanuel Macron has confirmed.

French President Emmanuel Macron has confirmed that electricity prices for millions of households will rise by 10% from August as the government plans to scrap the tariff shield support program.

In an interview with France 2 this week, he called the increase in power prices a “proportionate” decision, linking it to geopolitical tensions and market disruptions. While confirming the end of the tariff shield, Macron stated that “the government will continue to support the most low-income households.”

In an effort to shield citizens from soaring bills amid high inflation rates across the Eurozone, the French authorities introduced a cap on electricity price hikes.

While the tariff shield was first implemented in 2021, electricity bills were capped at 15% from February to the end of July this year.

“For energy, it comes from outside. The state has invested to absorb all this but in the long term, if we had continued, it would have cost taxpayers,” Macron said.

Electricity prices in the EU soared last year following the bloc’s decision to abandon Russian energy as part of its sanctions policy. Another contributing factor to the rising prices was record-low nuclear output in France, where state-owned utility EDF has been struggling to get its fleet of nuclear reactors affected by stress corrosion back on track.

France’s electricity price cap is expected to be completely phased out by the end of 2024, according to a recent announcement by the minister of public action and accounts, Gabriel Attal.

Losses incurred due to the shield between 2021 and 2023 are estimated at over €110 billion ($121 billion), according to official numbers. Meanwhile, electricity prices under regulated tariffs have surged by an average of 31% since the end of 2021.

Image credit: Mohamed Khaled

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Source:RT News

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4 COMMENTS

  1. electricity price is the bigger scam within the EU there is. Or how to crush a country

    France still produce the cheapest electricty in europe with its many nuclear power plants. Even if some plants needs repairs.

    But it is a decision of the non elected european commission to dismantel parts of EDF and to to make it compulsory that EDF sales its production against cost price to distributors.

    The price of electricty is then paired/ indexed on the price of gas and energy( fuel) so that the distributor that is nothing less than a parasite, fixes the sale’ s price to the consumer. And makes a lot of money through printing invoices.
    It is like Wall Street, but then for electricity.
    The biggest beneficiary of this scam seems to be germany having re-opened coal electricty plants ( the green politicians sees no more objection)
    Macron is not only a weakling, but has also sold many french assets to foreign powers
    France is becoming an economical ruin.
    Many french want to get out of the EU and the euro

  2. Government gets more tax revenue, utility workers get pay raises, citizens cut grocery expenses to afford electric service. Well, that’s how it is here in the US anyway…. (Expect water and natural gas service increases to follow).

  3. My line charges went up first 70& , and then over a hundred again in the last two years.
    Yanis Varoufakis, ex-finance minister and ruthless analyst of the international bankster cartel (not only) on Greece, has explained in much detail the variants to the scheme/scam he exposes, but here is a short version:
    https://www.youtube.com/watch?v=R3bo-s_OY4Q
    The NZ variant has just a different flavour, same orifice.

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