France to Give Gas Discounts to Energy-Intensive Factories in South

France plans to grant special treatment to energy-intensive factories located in the South, in an attempt to offset higher gas prices that local users pay compared to industries in the north.

“It’s a first step to try to solve the problem,” Benjamin Gallezot, an official at the Industry Ministry, said at an energy conference in Paris today. 

According to Reuters, prices in the south have been higher than in the north due to diversion of imports from Europe to Asia and to “structurally” tighter supply. 

In September, President Francois Hollande said that a carbon tax from 2014 and a tax break on home insulation would help the country to cut fossil fuel use by 30%. Exponents of the business communities contested the decision, arguing that the new legislation would simply increase taxes.

Cheap energy prices for industries that use the most is key to making them competitive, Energy Minister Philippe Martin and Industry Minister Arnaud Montebourg said in a joint statement yesterday.