SNCF warns of train fare rise

TRAIN fares in France could rise next summer to help meet the cost of a proposed hike in electricity prices, the SNCF has warned.

The rail operator says a new law being discussed in parliament this week is likely to add an extra 25% to its energy bill - and this rise might have to be passed on to customers.

The group has benefited from preferential rates from EDF since 2007. The new law would scrap these in June 2011 on competition grounds to give EDF's new distribution rivals a fair chance.

SNCF purchasing manager Pierre Pelouzet said having to pay the market rate for electricity would add tens of millions of euros to the rail operator's energy bill, which is currently about €315m a year.

He said the group would either have to absorb the extra cost and get further into debt, seek more money from regional councils or increase ticket prices.

Paris public transport body RATP is facing a similar problem, as it too benefits from a cheap deal with EDF at the moment.

Related stories:
Rural trains could be axed for buses
Increasing number of TGV delays
TGV ticket prices rise 2%