France pledges to protect households against soaring electricity prices

France will maintain caps on electricity prices until next year in a bid to protect households from spiraling tariffs.

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(Bloomberg) – France will maintain caps on electricity prices until next year in a bid to protect households from soaring prices.

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Prices will be « contained » in 2023 and consumers will not be asked to pay the difference between rising costs and current price limits, Finance Minister Bruno Le Maire was quoted as saying by France Info radio on Saturday. The government has capped electricity price increases at 4% until the end of the year.

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France’s pledge comes as household bills in the UK are set to jump in October after the cost cap was raised. Faced with soaring electricity prices, the European Union must convene an emergency meeting of energy ministers to discuss bloc-wide solutions and the implications for heating and activity this winter. industrial.

Read more: The price of electricity is spiraling out of control in the main European markets

Electricity prices in Europe’s two main markets, France and Germany, jumped more than 25% on Friday and are setting records almost daily. These increases are due to a drop in nuclear electricity production in France and the restriction by Russia of the supply of natural gas.

The French government is considering a system this winter for households and small businesses under which they would benefit from preferential electricity tariffs in exchange for an agreement to reduce their consumption during periods of high demand, such as very cold days, a reported AFP.

This has existed for years for large industrial users of electricity, who agree to reduce their production when the electricity supply is tight.