France to limit electricity price hikes next year – Finance Minister

Electricity transmission pylons can be seen near TGV high-speed train tracks in Villebon-sur-Yvette, near Paris, France, August 1, 2022. REUTERS/Benoit Tessier/File Photo

PARIS, Aug 27 (Reuters) – French Finance Minister Bruno Le Maire said on Saturday that increases in electricity prices next year will be limited, but did not give specific details.

“Increases that the President and Prime Minister have spoken about will be limited increases,” Le Maire said, according to French television channel BFM.

The government will also provide aid to households least able to pay their energy bills, he added.

French President Emmanuel Macron said earlier this week that there were “tough months ahead” while his government warned of energy price rises as the war in Ukraine grinds on. read more

In the coming weeks the French government will have to decide whether to renew price caps on electricity and gas that expire at the end of the year, and whether to maintain a fuel rebate. These two measures have helped keep French inflation lower than many European peers but weigh heavily on public finances.

A government spokesman said last week that France could not hold on to energy price caps to help households forever. read more

France has committed to capping an increase in regulated electricity costs at 4% until the end of the year. read more

Reporting by Mimosa Spencer; Editing by Christina Fincher

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