France: Top court approaches decision on energy price spat

A high court in France is set to make a decision on a proposed cap on energy taxes suggested by the government for leading electricity utility EDF, according to reports.

An official told reporters that the nation’s State Council will rule on the caps sometime next week. The price limits have caused controversy between EDF and its rivals, which claim that the caps distort the market.

According to reports, a complaint was filed against the government’s decision to scrap plans for a 5 percent increase in power taxes, planned for early August. But days later, Prime Minister Manuel Valls said a tariff increase would eventually occur, but of less than 5 percent.

The Anode Association of Alternative Power Producers, which filed the complaint against the decision to nix the tax increase, says that the decision to cap the energy tax blocks “the development of competition in the market” and make it difficult for alternative power companies to compete with market leader EDF.

The State Council did not say exactly when it would rule on the matter.

Full content: Reuters

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