Gas prices frozen but elec to rise

Gas prices in France are to be frozen until April 2011, when a new rate calculation will be put in place. Natural gas prices increased by 15 per cent in 2010 after rates went up twice in April and July.

But since October, prices have been frozen following the industry regulator’s call to update the method for calculating household rates.

The new formula to come into force in April next year will take into account the evolution of wholesale market rates, economic affairs minister Christine Lagarde and industry minister Eric Besson explained.

Gas rates can only be revised in January, April, July and October, with the approval of the energy regulator, the Commission de Régulation de l'Energie (CRE).

Meanwhile, electricity bills are set to rise by about three per cent from January next year. An amendment to the draft budget of 2011 allowed for the tax on household electricity bills, the contribution to the electricity public service CSPE, to rise from e4.50 to e7.50 per MWh.

This “contribution” is aimed to finance the development of solar energy and will be used by EDF to buy back renewable energies.

In August, electricity prices went up by 3.4 per cent, the biggest percentage increase since 2003.

The Socialist party commented: “The cost of financing clean energies should not be borne by customers only. Small businesses and household with small income will be the first hit.

“The government and heads of EDF are making our country pay twice for the delay taken by the public company in renewables.”

In August, EDF had announced that the rates for buying back solar energy from industrials would be cut by 12 per cent.