French Regulator Advocates for Power Price Reduction

French power regulator CRE recommends a 10% reduction in state-regulated household power prices from February 2025, aiming to alleviate the financial burden on citizens. Rising electricity costs, driven by the Ukraine war and EDF reactor issues, have led to voter dissatisfaction and political gains for opposition parties. The government must now decide on this proposal.

The French power regulator, CRE, has suggested that state-regulated household power prices be reduced by at least 10% starting February 2025. This recommendation aims to ease the financial strain on French households.

Rising dissatisfaction with inflation has influenced voter sentiment in recent European and national elections, benefiting opposition parties on both the left and right. Electricity prices in Europe have surged over the past two years, primarily due to the conflict in Ukraine and issues at state-owned utility EDF, which faced corrosion problems in several nuclear reactors.

The French government initially imposed a price cap on electricity following the Ukraine war, but has since eased it, keeping average power costs relatively lower compared to other European nations. The government now faces the decision to heed the regulator's advice, a move previously endorsed by outgoing Finance Minister Bruno Le Maire.

(With inputs from agencies.)