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ENERGY

French electricity grid operator to return €1 billion to clients

France's electrical grid operator RTE said on Wednesday that it would hand at least one billion euros back to major power users in early 2023, as its revenues have surged during Europe's energy crisis.

French electricity grid operator to return €1 billion to clients
Many power companies have seen huge profits as energy prices soared. Photo by Lindsey Parnaby / AFP

The exact amount will “match the one-off profit forecast for 2022 with the electricity market under stress,” the largely state-owned RTE said in a statement.

It added that the reimbursement could reach a record of more than €1.5 billion.

The move comes as public pressure is growing for an EU-wide tax on the “super-profits” generated by energy companies as prices have soared since Russia’s invasion of Ukraine.

Almost 380 large-scale electricity buyers in industry would share around €130 million from the pot, RTE finance and purchasing director Laurent Martel told AFP.

The companies include chemical plants, metalworking sites, steelmaking operations as well as paper and cardboard factories.

But most of the payout — around 90 percent — will go to operators of local low- and medium-voltage networks, which bridge the gap between RTE and end users of electricity, from industry to households.

RTE’s revenues have been especially strong this year thanks to fees paid to use its so-called “interconnectors” across national borders.

These depend in part on the difference in electricity prices between France and its neighbours, which soared this year due to the energy crunch from the war in Ukraine and a large chunk of the country’s nuclear reactor fleet being under maintenance.

RTE said that without its plan to bring forward the reimbursement, the payments would instead be spread over several years.

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POLITICS

French MPs back €230m aid for households that use wood-burners for heating

Householders in France who heat their homes with wood-burners will soon be in line for financial help with the cost of keeping warm this winter.

French MPs back €230m aid for households that use wood-burners for heating

During a reading of the draft budget, the National Assembly adopted a €230 million aid package for households that use logs or wood pellets for heating.

The aid package – which had support across the Assembly, and the backing of the government – is modelled on an already existing policy to help the owners of properties that use oil-fired heating systems.

From December 22nd, households heating with wood will be able to apply for a “wood energy voucher” on the cheque energie website. Aid is means-tested, but those eligible will be able to claim between €50 to €200 to help with the cost of heating their homes.

The amendment was passed with 218 votes in favour and just one against.

According to the Agence de la transition écologique (Ademe), wood is the main source of heating for more than three million people in France. 

The price of wood-pellets used in household burners has doubled since the beginning of 2021, leaving many households struggling with the cost of fuel. 

Minister of Public Accounts Gabriel Attal also told MPs that the government was working on ways to reduce ‘profiteering’ from the rising cost of firewood, and said that officials would “not hesitate to crack down” on any cases of fraud.

READ ALSO What are the rules on fires and log-burners in France?

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