HomeEconomyEuropean electricity market: French supermarkets warn of inflationary risk

European electricity market: French supermarkets warn of inflationary risk

The Perifem association, which brings together French distribution players, fears a reform that could result in an increase in sales prices to compensate for the increase in energy costs.

The project to reform the European electricity market, which could be the subject of an upcoming compromise, would run the risk of “increasing inflation” in the absence of price regulation for companies, French supermarkets warned on Friday. Perifem, an association that brings together French distribution players around energy or environmental issues, said in a statement on Friday that it wanted to warn “of the great risk that the absence of regulation of the price of electricity would pose for companies.”

The professionals claim to have taken note of a “compromise text” presented by the presidency of the European Council “that eliminates access to guaranteed price contracts (CFD)” on the existing nuclear park, which, according to Perifem, could lead to a “major industrial crisis.” linked to rising electricity costs.

The text is still being discussed.

The companies represented by the federation “are being the most affected by the explosion in gas and electricity prices, quintupling the average price paid by industrial, tertiary and public consumers between 2021 and 2023”, which according to Perifem “had a great impact on inflation and led to the weakening of many businesses and communities.” Considering that “further destabilization would be unsustainable” and could lead to an increase in sales prices to offset this increase in costs, Perifem insists on “the absolute need to regulate the price of nuclear electricity, essential to maintain competitiveness and guarantee the energy transition of the sector.

According to corroborating sources, the aforementioned text, a proposal from the Spanish presidency of the EU, continues to be the subject of diplomatic discussions ahead of the meeting of Energy Ministers scheduled for Tuesday in Luxembourg and where the 27 will try to agree on a common position. . . The reform of the electricity market is a crucial issue, on which the energy bills of homes and businesses in Europe depend. It was on the menu of Franco-German exchanges on Monday and Tuesday. Emmanuel Macron announced at the end that Paris and Berlin had set themselves the goal of reaching an agreement by the end of the month.

Author: TT with AFP
Source: BFM TV

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