Enormous electricity bills brought many French companies to the brink of collapse

Enormous electricity bills brought many French companies to the brink of collapse

The French government has decided not to allow an increase in electricity prices for households, but only for companies.

This has already brought many French firms and companies to the brink of collapse.

Nurse said cites the example of the Deshomon ironworks, which produced metal objects such as manhole covers for more than 150 years.

They fear that the business could die because they have to pay one and a half million euros for electricity – twice as much as in 2019.

“For now, we manage to put electricity and raw materials into the customers’ account, and our prices are 20 percent higher, and next year they will be 40 percent higher, and that could mean a disaster,” says Jean-Baptiste Deschaumont, director of the administration.

Next year, the electricity bill could amount to around 10 million euros, according to current forecasts.

The ironworks fear that they could lose customers who will turn to cheaper competitors. That’s not all:

“We will have to reduce production and the workforce, and we will try to prevent that from happening, so we have already frozen investments and loans,” says the owner.

Electricity, restriction, fee

Electricity (Pixabay)

French companies under attack due to the price of electricity

Apart from the decrease in gas supplies after the Russian invasion of Ukraine, another reason for the jump in electricity prices is the French nuclear sector.

“We are in favor of the government fixing electricity prices not only for households but also for companies, and that is the only way to plan for the year 2023 and to include it in our budget and remain competitive,” he says.

It would be ideal if the price remained fixed for two or three years, he adds.

Deshomo hopes that “he will not be defeated” and that the hundred-year tradition of the ironworks will not be interrupted.

Otherwise, workers in France these days have more reasons to be dissatisfied. Thus, the Eiffel Tower in Paris was closed all day due to a mass strike over the pension reform.

France’s main unions have organized strikes and called for protests in the streets of Paris and other cities over the government’s plan to raise the retirement age from 62 to 64.

They also demand an increase in wages and welfare due to rising inflation.

Around 6,000 protesters are expected to gather in Paris. Traffic disruption is also expected across France.

Source: DW, Media

Photo: Pixabay


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