PARIS (Pakistan Point News / Sputnik - 05th October, 2022) France's leading energy producers on Wednesday signed a deal to protect their customers from rising energy prices amid accelerated inflation in the European Union, French Economy and Finance Minister Bruno Le Maire said.
"I am glad to note that the main energy suppliers have agreed today to sign an agreement containing serious obligations (to protect customers). We welcome the decision of Total, EDF, Engie, unions of regional energy producers, associations that have agreed to sign the agreement designed to ensure security of our businesses," Le Maire said at a press conference following a meeting with the energy producers.
Each of the companies undertook to develop at least one profitable proposal for the purchase of energy for their customers, according to the French economy minister.
"Not a single enterprise must be left without a specific proposal for energy supplies, regardless of its size or success at the moment," the official added.
The agreement also obliges the energy suppliers to give customers two months notice about the end of their contracts and any changes in their value.
"I want to put an end to speculations in the market and announce a full mobilization of the energy suppliers with a view to providing French companies and SMEs (small and medium-sized enterprises) with concrete solutions," Le Maire said.
Last week, the EU energy ministers agreed on a series of new measures to regulate energy prices starting from December. In particular, the EU countries will set a mandatory goal to reduce electricity consumption by 5% and a voluntary goal to cut gross electricity consumption by 10% during peak hours.
The bloc will also introduce a limit on market returns of companies generating electricity from cheaper resources, for example, those based on renewable sources, nuclear energy, brown coal. The limit will be 180 Euros ($178) per megawatt hour.
Meanwhile, companies' incomes in excess of the limit may be directed to support consumers. The authorities of the EU member states will choose measures to collect and redirect these excess revenues by themselves. The countries will also be able to raise the limit or apply measures further restricting the companies' market income, or impose a cap on the income of other market participants, such as traders.
This summer, Paris launched an "energy sobriety" program aimed at reducing electricity consumption in the country by 10% to avoid shortages in the coming winter. The French government urged businesses and transport companies to present specific plans to achieve the goal. Le Maire also asked the European Commission to double its financial assistance to enterprises amid a sharp increase in energy prices caused by Western sanctions against Moscow.
In September, French Prime Minister Elisabeth Borne said Paris would take steps to keep the increase in gas and electricity prices at 15% in 2023. The measure will cost France 16 billion euros.
