PARIS, June 19 The French energy ministry
confirmed comments by Minister Segolene Royal about a cap on
electricity prices, despite a 7 billion euro ($9.5 billion) fall
in the market value of state-controlled utility EDF
following Royal's early morning comments.
The ministry said in a mid-afternoon statement that the
government plans to scrap a scheduled 5 percent increase in
power tariffs for Aug. 1 and reiterated that the calculation
method for regulated power tariffs will be reviewed in a new
decree, following the advice of energy regulator CRE which is
due on Oct. 1.
EDF shares, which had fallen as much as 11 percent on
Royal's comments, recovered partially on market rumours about a
possible price increase later in the year. The ministry
statement made no reference to any increase this year.
EDF shares were down 9.2 percent at 1318 GMT in the highest
trading volume since March 2011.
($1 = 0.7368 Euros)
(Reporting by Geert De Clercq; editing by Jane Baird)