Money News
8th August 2008
UK energy hikes 'subsidise French customers'
EDF customers in the UK are subsidising the European giant's French clients, it has been claimed.
Recently, the company hiked its energy tariffs by up to 22 per cent, prompting outrage from consumer groups.
In France, however, EDF raised its prices by just five per cent.
Ed Mayo, chief executive of Consumer Focus claimed that the disparity is because UK residents are subsidising their French counterparts.
This is down to the fact that foreign companies are often state-owned and therefore face no competition in their markets, he claims.
Mr Mayo said: "Protectionist European energy markets end up picking the pockets of consumers here."
EDF's hike was followed by British Gas announcement that its gas and electricity prices are rising by 35 per cent and nine per cent respectively.
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