PARIS (Reuters) – French power regulator CRE recommended that state-regulated household power prices be set at least 10% lower from February 2025 to ease the financial burden on the population.
WHY IT’S IMPORTANT
Dissatisfaction with inflation among French voters has been reflected at the ballot box in European and national elections this year that saw opposition parties from the left and right gain traction.
CONTEXT
European electricity prices have soared over the last two years, driven mostly by the war in Ukraine and problems at state-owned utility EDF which had to fix several nuclear reactors affected by stress corrosion.
France first put in place a price cap on electricity prices following the Ukraine war, which the government then gradually eased. Average power costs still remain relatively low compared to other European countries.
WHAT’S NEXT?
The government will have to decide whether to follow the regulator’s suggestion, but outgoing Finance Minister Bruno Le Maire had already flagged earlier this year he would favour significantly lowering power prices.
(Reporting by Makini Brice and Tassilo Hummel; editing by Philippa Fletcher)
