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FRENCH GOVERNMENT TO BLOCK FURTHER NATURAL GAS, ELECTRICITY PRICE HIKES



Issued on: 30/09/2021 - 20:39


Prime Minister Jean Castex made the announcement live on French television
channel TF1. © Thomas Coex, AFP
Text by: NEWS WIRES
1 min
Listen to the article

France will move to ease the cost of rising prices for consumers by blocking
further natural gas price hikes and by preventing a planned increase in
electricity tariffs scheduled in February, Prime Minister Jean Castex said on
Thursday.

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"For natural gas and electricity, we'll put in place what I would call a tariffs
shield. We're going to shield ourselves against those tariff hikes," Castex told
TF1 television.

On Monday, France's energy regulator said that Engie's gas prices would increase
by 12.6% on Oct. 1.

Castex said that rise would go through but that the prices from then on would
remain at the same level until world prices go down, something which should
occur in March or April.

Energy prices have been rising sharply around the world over the last few
months, adding to inflationary pressures and threatening to dent consumer
confidence.

French Finance Minister Bruno Le Maire said earlier this week he expected rising
energy prices to last for a "few more months."

The French government said two weeks ago it would make a one-off payment of 100
euros ($115.79) to the 5.8 million households that receive energy vouchers to
help ease the cost of rising energy bills.

Castex said the government would be willing to consider taking further action if
the set of measures currently planned were insufficient to ease the burden for
the less well-off.

(REUTERS)

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