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ENERGY

German gas companies under fire for price gouging

Germany's competition regulator the Federal Cartel Office has launched a probe of 35 natural gas suppliers suspected of charging excessively high prices, it said Wednesday.

German gas companies under fire for price gouging

German authorities had noted price differences that ranged from 25 to 45 percent, a statement said. The cartel office would therefore check whether recent German gas price hikes were justified, it added.

Head regulator Bernhard Heitzer said preliminary results of the probe suggested that competition was “still horribly weak” in the gas sector. The price increases concerned four million clients and around 20 percent of the market, the office said.

A spokesman contacted by AFP declined to provide the names of companies under investigation, saying only that national and regional firms were concerned.

In all, 770 companies supply gas to households and companies in Germany, of which around 30 are active throughout the country.

Regional anti-cartel offices had also launched their own investigations into gas price increases, the federal office spokesman said.

BUSINESS

France’s EDF hails €10billion profit, despite huge UK nuclear charge

French energy giant EDF has unveiled net profit of €10billion and cut its massive debt by increasing nuclear production after problems forced some plants offline.

France's EDF hails €10billion profit, despite huge UK nuclear charge

EDF hailed an “exceptional” year after its loss of €17.9billion in 2022.

Sales slipped 2.6 percent to €139.7billion , but the group managed to slice debt by €10billion euros to €54.4billion.

EDF said however that it had booked a €12.9 billion depreciation linked to difficulties at its Hinkley Point nuclear plant in Britain.

The charge includes €11.2 billion for Hinkley Point assets and €1.7billion at its British subsidiary, EDF Energy, the group explained.

EDF announced last month a fresh delay and additional costs for the giant project hit by repeated cost overruns.

“The year was marked by many events, in particular by the recovery of production and the company’s mobilisation around production recovery,” CEO Luc Remont told reporters.

EDF put its strong showing down to a strong operational performance, notably a significant increase in nuclear generation in France at a time of historically high prices.

That followed a drop in nuclear output in France in 2022. The group had to deal with stress corrosion problems at some reactors while also facing government orders to limit price rises.

The French reactors last year produced around 320.4 TWh, in the upper range of expectations.

Nuclear production had slid back in 2022 to 279 TWh, its lowest level in three decades, because of the corrosion problems and maintenance changes after
the Covid-19 pandemic.

Hinkley Point C is one of a small number of European Pressurised Reactors (EPRs) worldwide, an EDF-led design that has been plagued by cost overruns
running into billions of euros and years of construction delays.

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