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15 Sep, 2022 08:01

France reveals cost of power price caps

The government will spend €16 billion to limit energy price increases to 15%, finance minister says
Mikhail Reshetnikov / EyeEm

The latest measures adopted by the French government to help consumers deal with rising energy prices will cost Paris €16 billion, according to the country’s Finance Minister Bruno Le Maire.

According to the plan announced by French Prime Minister Elisabeth Borne, households with gas heating will on average pay €25 more every month during 2023 instead of an extra €200 without the limitation. Meanwhile, the average household with electricity heating will see monthly power bills increase by €20, she said.

The price cap increase for gas would take effect from January, while the cap increase on electricity would follow a month later, according to Borne, who assured that Paris would continue handing out subsidies, with a one-time payment of up to €200 going to the 12 million poorer households.

Commenting on the measures, Le Maire stressed that energy prices would have risen by 120% without the limit. 

EU member states have to plow enormous funds into tax cuts, handouts, and subsidies in an attempt to stamp out the power supply crunch that has been hitting the entire EU over the past six months, driving up inflation and forcing industries to slow down or even shut their production lines.

For more stories on economy & finance visit RT's business section

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