Doubts grow over Belgian plan to cap energy prices

BRUSSELS, Oct 10 (Reuters) - Doubts emerged on Friday over a proposal by Belgium's energy minister to cap wholesale electricity prices at GDF Suez (GSZ.PA) subsidiary Electrabel, with rival politicians clearly opposed to the plan.

News of the plan in a newspaper interview on Thursday sent Suez shares down as much as 13 percent, with shares continuing their downward path on Friday. They were off 7.9 percent at 24.19 euros at 1355 GMT on Euronext Paris.

State Secretary for Finance Bernard Clerfayt, a liberal, said that competition was better than capping prices.

"We only have two producers in the Belgian market. It is not by capping prices that we will attract a third," he commented on his website on Friday.

KBC Securities said in a research note it appeared not everyone shared Energy Minister Paul Magnette's point of view.

Analysts at Oddo Securities said the drop in the share price was "much too excessive", adding that they did not think that the statements by Magnette would translate into significantly lower rates.

In an interview with Belgian daily Le Soir on Thursday, socialist lawmaker Magnette said he was confident that the European Commission would not oppose the measures.

A spokesman for Magnette said that the plan, if backed by the government, would not come into effect for several months.

"The debate has been opened, but you have to take into account that it could be at least a few months before there could be a vote on such a measure," he said.

He added that there was a clear need to cap wholesale rates.

"Electricity bills in Belgium are 20 to 25 percent higher than in surrounding countries, and of course we have a quasi-monopoly of Electrabel," he said. (Reporting by Antonia van de Velde; Editing by David Cowell)