The country first froze gas prices in October 2021 and also capped electricity prices from increasing by no more than 4 percent.
While energy prices soar in the UK and as companies like Shell and Centrica post record profits amid a cost of living crisis for the rest of us, France has extended its energy price cap measures to the end of 2022.
The country first froze gas prices in October 2021 and also capped electricity prices from increasing by no more than 4 percent.
“The price cap provides consumers in France with guaranteed tariffs and it is the State that pays the difference between market rates, which have obviously risen considerably in France and in other European countries,” France’s prime minister’s office stated.
It’s been estimated by Brussels-based think tank Bruegel that France will spend €38billion in measures designed to counter rising prices.
The French government is also poised to pay nearly €10bn (£8.5bn) to fully nationalise EDF as ministers attempt to tackle the European energy crisis.
While news of the cap being extended in France was announced this week, in the UK, British Gas owner Centrica announced that its profits have increased five-fold to £1.34 billion, as energy bills soar and millions of families live in fuel poverty across the country.
Centrica’s record profits for the first six months of 2022 are five times the amount from the same period last year of £262m.
Oil company Shell also reported record profits of $11.5bn, doubling its earnings in a single year amid surging energy prices.
Meanwhile, British households face annual energy bills of £3,850, three times what they were paying at the start of 2022.
Many have been left wondering why the UK government can’t follow in the footsteps of France and cap prices, while calls have also for energy companies to be bought into public ownership.
Basit Mahmood is editor of Left Foot Forward
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