The French state owns approximately 85% of the energy companies and takes decisions on the tariffis. EDF, in order to finance its planned investments, intends to raise the electrical prices.
Claude Gueant, chief of staff of French president Nicolas Sarkozy, said: I have found it regrettable that the president of EDF worries French people with prospects of increases he knows well the government… will not support. We do not want to raise electricity prices in France to the same level as elsewhere. If there is an increase, it will be extremely limited.
Gueant informed that during the past decades, France, in order to provide cheaper electricity to the residents and industries, has invested heavily in the energy infrastructure compared to other European countries.
The French government in the next few weeks would convey its decision on electricity prices to public. EDF Chief Executive Pierre Gadonneix, in order to help the company’s investments in its 58 nuclear plants in France, called for a price hike.
During recent years, the company is purchasing assets abroad, including half of the nuclear reactors of Constellation Energy Group(CEG) in the US. Due to which the company’s debt during 2008 increased by about 50% to EUR24.5 billion.
During 2009, the company plans to invest EUR7.5 billion in France, approximately EUR2.5 billion more when compared to 2008 investment.
