"Can't Even Bake Baguettes Due to Soaring Electricity Bills"… Crisis in France's Baking Industry

Electricity Bill Surge Following Flour and Butter Price Hikes
French Government Takes Measures Including Subsidies

[Asia Economy Reporter Jeong Hyunjin] Amid the power shortages across Europe caused by the aftermath of the Ukraine war, French bakeries are struggling to even bake baguettes, the 'people's bread' and staple food, due to rising energy prices, AFP reported on the 3rd (local time).

According to the report, Julien Bernard Reynar, who runs a bakery in Bourgaltrof in eastern France, said in an interview with the media on the same day, "I never imagined that I would have to close the bakery because of the electricity bill," expressing difficulties in running his store. He said that since last year, he has been struggling with soaring prices of ingredients such as flour, butter, and sugar, and now the rising electricity bill has made things even harder.

[Image source=EPA Yonhap News]

Reynar explained, "I renewed the contract in early September last year, but the cost increased by two and a half times," adding that the electricity bill, which was 400 euros (about 540,000 KRW) per month last year, rose to 1,500 euros (about 2,020,000 KRW). He also mentioned hearing that in some places, electricity bills have increased by 10 to 12 times.

The French government has begun preparing measures as the baking industry voices such difficulties. So far, no specific actions have been taken regarding electricity price hikes for businesses. French Prime Minister ?lisabeth Borne promised in an interview with France Info radio that bakers facing financial difficulties would be allowed to postpone payments such as taxes.

Additionally, Bruno Le Maire, Minister of Economy and Finance, held a meeting with officials from energy suppliers including EDF and TotalEnergies on the same day. After the meeting, Minister Le Maire told reporters that they agreed to review the possibility of renegotiating energy supply contracts depending on the situation faced by bakers. He also expressed expectations that many businesses could save about 40% on energy costs through government subsidies and reduced rates from energy suppliers.

Minister Le Maire added that the baking industry should not be driven to despair just one month after the 'artisan know-how and culture of the baguette' was registered as a UNESCO Intangible Cultural Heritage.