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French PM warns of `rationing` risk this winter

2022-08-30
PARIS: French Prime Minister Elisabeth Borne warned company bosses on Monday about the risk of energy rationing this winter and urged them to take steps to reduce their consumption.

`If we act collectively then we can overcome the risk of shortages, but unless everyone takes part and if all the bad-case scenarios come together then we could be forced to impose reductions on consumers, she told the Medef business group.

`If we end up with rationing, companies will be the most affected and unfortunately we need to be prepare d for it,` she continued.

Borne said the government was already drawing up contingency plans whichincluded a `quota trading system` that would enable companies to buy and sell power quotas. The government was also preparing measures to support companies that would be `too severely affected` by rationing.

The clear warning about the risk of shortages further underlines efforts by the government to prepare public opinion and businesses for looming difficulties caused by the ongoing war in Ukraine.

Speaking last week at the first cabinet meeting since the August summer holidays, President Emmanuel Macron warned that France might need to make `sacrifices` as a result of its support for Ukraine and its fight against Russia.-AFP