France forces EDF to take €8.4bn hit with electricity bill caps
January 18, 2022
As energy costs see increases, the French government will set a limit on electricity bill hikes to 4%, estimated to create a €8.4bn impact to EDF Energy, the country’s largest energy company. Shares of EDF fell by 20% as the government is also forcing their nuclear reactors to sell to rival suppliers, below market price, and setting a limit for what EDF is allowed to charge. 75% of electricity in France comes from nuclear reactors. Additionally, EDF reported that their nuclear generation capacity will be 10% lower than initial estimates because of ongoing maintenance in some of its 40 – 60-year-old nuclear plants.
The rise in energy prices is largely due to the global supply crunch of natural gas, with its effects trickling down on consumers, companies, and governments. This is not the only nation taking measures to help protect consumers. In Spain a windfall tax on excess profits of generators was introduced, and in Germany a renewable energy surcharge was removed.
