France vows to ‘contain’ soaring electricity costs

France vows to ‘contain’ soaring electricity costs

France vows to ‘contain’ soaring electricity costs

France’s finance minister has pledged to keep electricity costs in check for consumers as European energy prices soar.    

The Paris government has put in place an energy price cap to shield households until Dec. 31 and Bruno Le Maire said that next year, expected hikes would be “contained increases”.    

“The four percent cap will be maintained to the end of the year,” he told a ruling coalition conference in the eastern city of Metz.    

“There will be no catch-up of costs on the ceiling in 2023,” he vowed after President Emmanuel Macron had last week warned of energy price hikes.    

Le Maire also said access to a three billion euro fund for businesses unable to meet energy bills would be made easier.      

The shutdown of several nuclear reactors due to corrosion issues has contributed to the French electricity price increase.    

Traditionally an exporter of electricity, France is now an importer.    

The year-ahead contract for French  electricity on Aug. 26 surged past 1,100 euros ($1,096) per megawatt hour -- a more than tenfold increase on last year.