SNCF Réseau will increase the electricity prices in France, from 56 euros/MWh in 2021 to 473,51 euros/MWh in 2023, which equals to an 8,5 fold increase. According to Alliance 4F, the largest rail freight association in the country, this initiative will put in serious danger rail freight and the entire French logistics sector.

According to French media outlet BFMTV, 4F the sector has two main demands concerning this issue. First, a cap on the electricity price to be set at 180 euros/MWh. Moreover, the association is asking for the adjustment of the existing toll aid system. In this case, the change would be that freight toll invoices by SNCF Réseau to the operators would be picked up and paid by the state.

Alliance 4F joins CER in urging states to intervene

One of the risks highlighted by 4F is that higher energy prices for rail might cause chaos for the road freight industry as well. This is because, as the association explained, the road sector cannot absorb all the rail volumes, leading to possible disruptions in the whole supply chain. 4F is urging the French government to act. “Without an appropriate response, the dynamics recorded between 2020 and 2021 of the modal shift will be seriously called into question”, they said.

Alliance 4F is not the only player that is asking for more state intervention to help out the rail freight industry with the continuously rising energy prices. Earlier this week, the Community of European Railway and Infrastructure Companies (CER) has called on EU member states to intervene on behalf of railway companies when it comes to the rising electricity prices. CER stated that the current outlook exposes some worries concerning the financial stability of many railway companies.

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