France will keep electricity price caps in place next year in an effort to protect households from price spikes, Bloomberg reports.
Prices will be “held down” in 2023 and consumers will not be asked to pay the difference between rising costs and current price caps, Finance Minister Bruno Le Maire said today, according to France Info radio station. The government has limited the increase in electricity prices to 4% until the end of the year.
France’s pledge comes as UK household bills are set to jump in October following a rise in the cost cap.
Faced with soaring electricity prices, the European Union is set to convene an emergency meeting of energy ministers to discuss bloc-level solutions and the impact on heating and industrial activity this winter.
The price of electricity in Europe’s two main markets, France and Germany, jumped more than 25% on Friday and has been hitting near-daily records. The increases are due to a drop in nuclear power generation in France and a cut in natural gas supplies from Russia.
The French government is considering a scheme for households and small businesses this winter under which they would receive preferential electricity rates in return for agreeing to limit their use during periods of high demand, such as very cold days, AFP reported.
This has been the case for years for large industrial users of electricity, who agree to reduce their output when the supply of electricity is limited.
Source: Capital

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