EDF to raise rates for first time in three years

4th August 2006, Comments 0 comments

PARIS, Aug 4, 2006 (AFP) - Shares in EDF gained almost six percent in Paris Friday on expectations the state-controlled French electricity company would raise its prices on August 15.

PARIS, Aug 4, 2006 (AFP) - Shares in EDF gained almost six percent in Paris Friday on expectations the state-controlled French electricity company would raise its prices on August 15.

Dealers said the prospects for higher income had a greater influence on the market than EDF's quarterly sales figures which were slightly better than expected.

Shares in the energy group showed a gain of 5.94 percent to EUR 44.23 in early afternoon trade, while the CAC 40 index of leading issued had gained 0.63 percent overall.

On Thursday, the finance ministry said it would seek a rise of 1.7 percent in EDF's rates with effect from August 15, with a decision by the national energy regulator CRE due on Wednesday.

"The key element is the potential increase in the group's rates, more than the publication of quarterly sales figures that were slightly higher than expected," said a Paris broker who asked to remain anonymous.

"We had expected the tariffs to remain frozen until mid 2007."

The last increase in electric rates was a three-percent hike in January 2003, but that was followed one year later by a cut of 1.6 percent.

Meanwhile, EDF said that sales in the second quarter increased by 19.2 percent to EUR 12.77 billion, owing in large part to its international activities.

First-half sales showed an increase of 20.5 percent to EUR 30.36 billion.

Copyright AFP

Subject: French news


0 Comments To This Article