France to Raise Household Electricity Rates by 10% Starting August

"No Additional Fare Increases Until February Next Year"

The French government announced on the 18th (local time) through major foreign media that it will raise household electricity rates by 10% starting in August.

The 10% increase is lower than the 74.5% hike recommended by the French Energy Regulatory Commission (CRE) based on current market prices. A French government official stated that with this 10% increase, there will be no additional rate hikes until February next year.

The official said, "Although energy prices remain high, this is a phase of returning to normal after the energy crisis we experienced," adding, "France will continue to enjoy the lowest energy prices in Europe."

In May, French Finance Minister Bruno Le Maire mentioned that the policy capping electricity rates in France will be gradually phased out and completely ended by the end of next year.

Electricity prices across Europe surged last year due to the impact of the Ukraine war. In France, the nuclear power company EDF, which operates nuclear plants, recorded the lowest-ever nuclear power generation as reactors underwent repairs.