PARIS, Dec 6 (Reuters) - The French government is considering lowering taxes on electricity in order to stabilise household power bills, two sources familiar with the situation told Reuters on Thursday.
The government had said this week that it would prevent state-controlled utility EDF’s regulated power prices from rising this winter, but the firm’s competitors immediately said they would challenge that decision in court. Earlier government attempts at freezing prices have been overruled.
Household power prices are set by independent energy regulator CRE in a complex formula that includes the price of power generation, transport and distribution. A third part of the retail price is made up of taxes.
“What is being discussed is that the share of taxes in the power price could be reduced in order to compensate for an increase in the generation cost, which on balance would keep prices stable,” said one of the two sources. (Reporting by Benjamin Mallet; Writing by Geert De Clercq; Editing by Sudip Kar-Gupta;)