Open

Coming up

Don't miss

Replay


LATEST SHOWS

IN THE PAPERS

France concerned about anti-Semitism

Read more

WEB NEWS

Online movement demands peace in Gaza

Read more

BUSINESS DAILY

Apple aims to satisfy China's hunger for smartphones

Read more

DEBATE

MH17: Punishing Putin? (part two)

Read more

DEBATE

MH17: Punishing Putin?

Read more

MEDIAWATCH

Competing narratives in Malaysia Airlines disaster coverage

Read more

AFRICA NEWS

Kenya : Police arrest 8 over Mombasa rampage

Read more

FOCUS

Overfishing and the global appetite for bluefin tuna: can Tokyo turn the tide?

Read more

MEDIAWATCH

Too many graphic images from Gaza ?

Read more

  • Netherlands to honour MH17 victims in national day of mourning

    Read more

  • Kerry arrives in Israel to push for Gaza ceasefire

    Read more

  • Defying UK, France to proceed with warships sale to Russia

    Read more

  • US courts issue conflicting reports on Obamacare

    Read more

  • Video: Lebanon fears fallout from regional turmoil

    Read more

  • Widodo wins Indonesian presidential election

    Read more

  • Flight MH17 shot down ‘by mistake', US intelligence indicates

    Read more

  • US, European airlines suspend flights to Tel Aviv

    Read more

  • Australian veteran Rogers claims 16th stage of Tour de France

    Read more

  • France gives go-ahead to pro-Palestinian Paris rally

    Read more

  • French Jews mourn French-Israeli soldier killed in Gaza

    Read more

  • PSG punished by UEFA for abuse of disabled Chelsea fans

    Read more

  • Colombia's Rodriguez signs '€80m' contract with Real Madrid

    Read more

  • Children killed in minibus crash in eastern France

    Read more

  • A call for harmony in riot-hit ‘Little Jerusalem’ Paris suburb

    Read more

France

National electricity provider EDF calls for 20% price hike

Video by Fiona CAMERON

Text by FRANCE 24 (with wires)

Latest update : 2009-07-09

French electricity provider EDF says it wants to raise tariffs by 20% to make up for debts in excess of 24.5 billion euros, but it may have a hard time persuading the government to approve the hike.

French electricity provider EDF is pushing for a 20% rise in electricity costs for consumers over the next three years, with the goal of bringing the company out of tremendous debt, chief executive Pierre Gadonneix has announced.

In order to finance its investments and acquisitions, EDF has accrued 50% more debt since last year, in excess of 24.5 billion euros. The company was saddled with debt worth 16.3 billion euros last year following the acquisition of British Energy.

The announcement comes as EDF reveals it has raised around 3.2 billion euros via a bond issue aimed at private individuals.

“If we don’t raise our prices, EDF will have to reduce its investments next year,” the company’s chief executive said.

The problem, according to Gadonneix, is that the “tariffs do not follow the rate of inflation.” He added, “If, for the last 25 years, the price of electricity had followed [inflation], the current prices would be 40% higher than they are.”

Tariffs for electricity are revalued annually by the French government, which receives a non binding request from EDF and input from the Commission for the Regulation of Energy.

The consumer organization CLCV has protested at the move. Its delegate general, Thierry Saniez, described the suggested increase of 20% as “totally disproportionate.” He called for “much greater transparency” regarding the revaluation of electricity prices.
 

Date created : 2009-07-09

COMMENT(S)