SHARE
COPY LINK

FINANCE

Sarkozy’s next move: Is he off to London?

Former French president Nicolas Sarkozy has made plans to start a €1 billion investment fund in London, a French news site claimed on Monday. Aides close to the ex-President have denied the report however, calling it "absurd".

Sarkozy's next move: Is he off to London?
Former French president Nicolas Sarkozy, speaking at the 2011 World Economic Forum in Davos. Photo: World Economic Forum

Ex-French President Nicolas Sarkozy with the help of his advisor Alain Minc, has been engaged in "secret preparations" to raise €1 billion for a new fund that he intends to manage from London, the investigative French website Mediapart reported on Monday.

Citing various unnamed sources in the business world, Mediapart claims the former head of state has been in contact with various investors and financial institutions to try and raise the princely sum.

The project is still in its infancy according to the website, which has built a reputation in France for uncovering political scandals, with Sarkozy not quite ready to take the plunge.

Sarkozy, who was ousted by François Hollande in last May's presidential elections, is currently on the global lecture circuit but has been touted for a return to politics with his UMP party in turmoil after the bitter leadership battle between Francois Fillon and Jean-Francois Copé.

If the idea that the former president would up sticks and move to London seems fanciful, his advisors would agree.

"This claim is just pure fantasy," one of his aides told French daily Le Figaro.

Minc, who is also a prominent French businessman, vehemently denied his involvement in any such project and is quoted in Le Figaro as saying, "Nicolas Sarkozy doesn't need my help to meet the world's biggest investors – he has thousands of contacts."

"It's absurd to think that [Sarkozy] could just move to London and stop paying taxes in France," he added.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

MONEY

Reader Question: Why did my French electricity bill increase by more than 4%?

The French government has capped electricity prices rises at four percent - but as with many French rules, there are certain exceptions.

Reader Question: Why did my French electricity bill increase by more than 4%?

Question: I read in the media that electricity prices in France are capped at four percent, but I just got a letter from EDF telling me that my bill is going up by almost 20 percent – is this a mistake?

The French government’s bouclier tarifaire (tariff shield), froze gas prices at 2021 levels and capped electricity price hikes to four percent – it remain in place until at least the end of 2022.

However, there are some customers who will see increases to their bills of more than that – here’s why: 

The regulated tariff rate

The French government involvement in price-setting doesn’t just happen during periods of energy crisis, normally regulated tariff prices are updated twice a year: usually on February 1st and August 1st.

Typically, this value is calculated by the CRE (commission de régulation de l’énergie) and it is based on several different factors, which are explained on this government website. These tariffs proposed by the CRE are then subject to approval by the ministers in charge of energy and the economy.

READ MORE: EXPLAINED: Why are French energy prices capped?

These affect the state-owned Engie (formerly Gaz de France), the mostly state-owned EDF and some local distribution companies. Around 70 percent of people in France get their electricity from EDF but other suppliers do exist in the market.

These alternative suppliers, like Direct-Énergie, Total Spring or Antargaz, are free to charge more – but don’t usually charge much above the EDF rates for obvious commercial reasons.

Basic rate

The government-set limit in price rises refers only to the basic rate (option base) for electricity.

This plan represents over 80 percent of the 32 million households connected to the electricity grid in France. So, there is a good chance you might be subscribed to this without even realising it. 

If you are on the basic tariff rate, your bill will not increase by more than four percent this year.

Other tariff options

However, other options for electricity bills do exist, including off-peak rates, green deals and fixed energy prices for a certain period.

Typically people who sign up for these will have been paying less for their electricity in the preceding months than those on the base rate.

However, there are certain special deals that are not covered by the four percent cap, and some users will find that their deal period has come to an end, they are then shifted onto the base rate – which is likely to represent a price increase for them of more than four percent.

It’s little consolation when faced with rising bills, but you will likely have been paying significantly less than customers who have been in the base rate for the past few years.

READ MORE: French government to continue energy price freeze until at least 2023

Kilowatt price

Because most electricity price plans are bafflingly complicated, the easiest way to compare is to look at the price per kilowatt-hour.

Your electricity bill consists of a fixed part, the monthly subscription (abonnement) and the variable part, which depends on the quantity of electricity consumed (in euro per kilowatt-hour, kWh). The latter part is what is concerned by the tariff shield of four percent.

Here is an example of what that might look like:

The mid-August base rate price per kilowatt-hour is €0.1740/ kWh, so if you’re with EDF they cannot charge you more than this rate.

Other EDF plans charge significantly less than that – for example the Vert Electrique Weekend deal has been charging €0.1080/kWh on weekends and €0.1434/kWh on weekdays. 

Bill rises

With the tariff shield, the average resident customer on the base rate will see a €38 rise on their bill this year, while professional customers will see an average of €60 rise. 

Without the tariff shield, electricity prices per residential (non-business) customer would likely have increased an average of €330 a year, according to the CRE.

SHOW COMMENTS