3% electricity rise is confirmed

Government says standard household tariff will rise on January 1, but electricity costs remain among cheapest in Europe

THE GOVERNMENT has confirmed plans to raise electricity bills by an extra three per cent in the New Year, to fund the switch to renewable energy.

The standard regulated household tariff will rise from about €93 to €96 per megawatt hour on January 1, budget minister François Baroin has announced.

The last rise was in August, when prices rose 3.4 per cent - the biggest percentage rise since 2003.

News of the proposed increase emerged last month, when EDF warned that it needed more help to meet the cost of buying back solar energy from households, as required under the Grenelle environmental agreement.

The costs are funded in part through the Contribution au Service Public de l'Electricité (CSPE), a levy on individuals' electricity bills.

The government has defended the rise. It says electricity prices in France remain among the cheapest in Europe, about 25 per cent below the European average.

These two electricity bill increases within six months have been accompanied by similar increases in the price of gas. GDF added 9.7 per cent to bills in April and a further five per cent in July.