June 19, 2014 / 1:30 PM / 3 years ago

French energy ministry confirms power price caps

PARIS, June 19 (Reuters) - 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

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