At a time when British gas users are fretting over spiraling gas costs and the availability of supply on an open market, GDF has been complaining over the continued vice-like grip the French government holds over its energy sector.
French authorities have told the domestic gas incumbent that it cannot increase prices to the regulated sector (domestic and selected business) over the 2005/6 winter. GDF had wanted to increase tariffs by E2.45/MWh on average from the start of January 2006. Now that it cannot the company is arguing that it will lose E250 million in terms of both sales and earnings before considerations.
Furthermore, according to figures quoted by Reuters, GDF said cumulative delays in tariff increases since November 2004 would cost it E750 million by the start of April next year.
