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WSJ:French Energy Min: Mulling Options To Prevent Gas Price Hikes For Households
 
PARIS (Dow Jones)--French Energy Minister Eric Besson said Tuesday he is mulling all options to prevent a natural gas price increase for households until July 2012 after the country's top administrative court Monday suspended a government-imposed price freeze.

"Eric Besson evaluates all options and favors scenarios that would block any gas price increase for households by July," the ministry said Tuesday in an emailed statement.

The Conseil d'Etat, the country's highest administrative court, Monday suspended the price freeze imposed and extended in September by the government. The court said the freeze, imposed a few months ahead of the presidential elections, did not seem legally justified.

In October, an association of French energy groups, which include Direct Energie and Poweo, filed a complaint to France's highest court saying that the government price freeze made it impossible for them to compete with industry heavyweight GDF Suez SA (GSZ.FR).

In a statement the court said that government ministers have one month to clarify their position on gas prices.

Regulated gas tariffs for household and small companies are normally reviewed every three months and vary up or down to reflect a rise or drop in the purchasing costs of distributors.

However, demands for tariff rises submitted by GDF Suez and other gas distributors were rejected by the government twice this year, in the third and the fourth quarters. GDF has said a price freeze could cost the company EUR400 million.

-By Inti Landauro, Dow Jones Newswires; +33 1 4017 1740; inti.landauro@dowjones.com
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