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UK consumers 'could subsidise French energy price freezes'
The French government's decision to place a two percent cap on electricity price increases may be partly subsidised by UK households, MPs and consumers groups have warned.
While the French utilities firm EDF recently announced that it is to put up electricity prices by 22% across the UK, it has now been confirmed that, due to the legislation now in place, it will not allow prices to go up by more than five percent in France.
According to consumer watchdog Energywatch, this could widen the gap between the two countries further still, with Britons currently receiving bills 11% higher than their neighbours across the Channel.
The Liberal Democrat energy spokesman Simon Webb argued that the government can no longer leave energy pricing to market forces, suggesting that the UK should follow France's lead in order to protect consumers.
"EDF will have to make up the shortfall somehow," he told the Times.
"They may have to look to customers in countries where the markets are less interventionist, like Britain."
However, a spokesman for EDF has rejected claims that British consumers will be forced to subsidise those in France, explaining that the finances of the company are self-contained within both countries.
While the French utilities firm EDF recently announced that it is to put up electricity prices by 22% across the UK, it has now been confirmed that, due to the legislation now in place, it will not allow prices to go up by more than five percent in France.
According to consumer watchdog Energywatch, this could widen the gap between the two countries further still, with Britons currently receiving bills 11% higher than their neighbours across the Channel.
The Liberal Democrat energy spokesman Simon Webb argued that the government can no longer leave energy pricing to market forces, suggesting that the UK should follow France's lead in order to protect consumers.
"EDF will have to make up the shortfall somehow," he told the Times.
"They may have to look to customers in countries where the markets are less interventionist, like Britain."
However, a spokesman for EDF has rejected claims that British consumers will be forced to subsidise those in France, explaining that the finances of the company are self-contained within both countries.
07 August 2008.
© 2008 Adfero Ltd. All rights reserved. Unless expressly stated any views are not those of Shepherd and Wedderburn. News supplied by Adfero DirectNews.
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