Cost increase only up to 15 percent: France caps prices for gas and electricity

French households face an additional 200 euros on their monthly heating bill from 2023.

Cost increase only up to 15 percent: France caps prices for gas and electricity

French households face an additional 200 euros on their monthly heating bill from 2023. With a cap, the government wants to reduce the drastic increase to just 25 euros and is putting together a package worth billions. Denmark has similar plans.

In view of the worsening energy crisis, France wants to limit price increases for gas and electricity to a maximum of 15 percent at the beginning of 2023. This corresponds to an increase of 20 to 25 euros in monthly heating costs, said Prime Minister Elisabeth Borne in Paris. Without the cap, the monthly costs would increase by up to 200 euros. "This is already the reality of tens of millions of households in the UK, Italy and Germany," said Borne. "France is the country in Europe that has best protected its citizens."

Around 40 percent of low-income households should receive an energy check at the end of the year, as in the previous year. The amount is 100 or 200 euros depending on income. Economy Minister Bruno Le Maire put the cost of the price brake at 16 billion euros.

Borne reiterated the appeal to companies and households to save ten percent energy. "If everyone behaves responsibly and saves energy, there will be no blackouts," said Borne. If the winter gets very cold and there are additional supply difficulties, European solidarity is essential.

The Prime Minister warned the energy company EDF to comply with the schedule for ramping up nuclear power plants that have been shut down. "This will have a direct impact on the price of electricity," she said. She also announced a new law to accelerate the expansion of renewable energies, which is to be presented in the cabinet on September 26.

The Danish government has similar plans: This winter, it wants to give citizens the opportunity to pay some of their sharply increased electricity and gas bills later. Russian President Vladimir Putin's war of aggression in Ukraine has caused energy prices to explode, Prime Minister Mette Frederiksen said at a press conference in Copenhagen.

That is why they want to introduce an upper limit for what you have to pay for electricity, gas and district heating this winter, said the social democrat. Families should be able to defer payment of the additional amount that exceeds the prices from autumn 2021 until a later date, when prices have fallen again.

The government intends to start negotiations on the proposal with the other parliamentary parties on Thursday. One hopes for an agreement as soon as possible so that the measure can be introduced before winter, said Frederiksen. Other initiatives to support Danish families with financial difficulties should follow in the coming period.

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