France’s EDF Nationalisation Proves No Easy Fix for Crisis

The usual characters on the left – Owen Jones, Novara, even Gordon Brown – are all singing from the same hymn sheet when it comes to the energy crisis: nationalise the energy companies, and this will all be fine. Apparently the UK is the only country to get this so wrong – Europe has the right answers…

Across the channel, Macron had the genius idea of fully nationalising the energy firm EDF and capping price rises at 4%. EDF now are suing the French state – or rather, French taxpayers – for around €8.4 billion for being forced to sell their energy at a loss. EDF predict the total losses for the year could reach as high as €15 billion, which will have to be picked up by taxpayers. So the amount households will consequently have to pick up through the tax system will be somewhere in the range of €300 to €500 per French household.

Not only that, Bloomberg reports France is facing an even darker winter than Germany, with EDF running just 26 of its 57 reactors, and the increasing reliance on gas and imported energy shooting wholesale prices through the roof. French forward pricing has shot up almost 1,000% since 2020…

Meanwhile Novara are bandying around charts claiming the UK is uniquely heading for disaster, with European customers shielded from the worst of it. Apparently German retail energy prices have only risen by 23% this year:

Guido’s not sure how Novara stumbled on these figures. According to Rystad Energy, the leading energy research and data analytics consultancy, European electricity bills alone have tripled in the last year…

Bloomberg also reports the total cost of Europe’s energy crisis could come to nearly €200 billion. A cost that one way or another eventually lands as a bill on European taxpayers’ doorsteps…

mdi-tag-outline Energy Crisis Novara Media
mdi-account-multiple-outline Emmanuel Macron
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