France decides to extend energy price cap measure 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.

Photo of a gas hob

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

As you’re here, we have something to ask you. What we do here to deliver real news is more important than ever. But there’s a problem: we need readers like you to chip in to help us survive. We deliver progressive, independent media, that challenges the right’s hateful rhetoric. Together we can find the stories that get lost.

We’re not bankrolled by billionaire donors, but rely on readers chipping in whatever they can afford to protect our independence. What we do isn’t free, and we run on a shoestring. Can you help by chipping in as little as £1 a week to help us survive? Whatever you can donate, we’re so grateful - and we will ensure your money goes as far as possible to deliver hard-hitting news.

Comments are closed.