Electricity prices to rise 1.9%

THE price of electricity for domestic EDF customers is expected to go up 1.9% on August 15.

The rise, which is yet to be confirmed, would be slightly less than the 2% applied last summer – and well below the controversial 20% (“possibly spread over three years”) that EDF boss Pierre Gadonneix said he wanted last month. It is however more than the 1.1% in 2007.

The rise is expected to be similar for small businesses but around 2.8% for larger ones.

It is traditional for the electricity tariffs to be reviewed in the summer.

The government says the proposed rise is justified by the need to “maintain the competitiveness of the electricity consumed in France,” which is, they say 15-30% cheaper than the European average.

Investment into the electricity system is needed, the government says, whether in terms of renewable energies, transport, distribution or maintenance of power stations.

The president of consumers’ body CLCV, Reine-Claude Mader, queried whether the extra money was justified by investments needed to supply France’s electricity or because “bad investments have been made elsewhere.” She was referring to deals such as EDF’s purchase of British Energy for €13.5 billion.

In its last contract with the state EDF agreed not to put up tariffs by more than inflation, but the government says this has been respected so far – since 2005 they have gone up just under 7%, while inflation has been 8%.

EDF recently raised €3 billion with a public loan.

Photo: sxc L_avi