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EU Power-Price Boost on Hold as Traders Doubt Carbon Tax

  • France seeking to persuade Germany to introduce carbon tax
  • EDF’s balance sheet would benefit from higher power prices
Updated on

A jolt in power prices because of the introduction next year of a carbon floor price in France has so far failed to materialize as traders suspect the measure may be delayed or won’t happen at all.

French Environment and Energy Minister Segolene Royal said last month that the nation will introduce a floor price for carbon of about five times current permit levels. The tax would probably boost power prices because of higher running costs for price-setting coal-stations, potentially leading to closures and increased imports.