they are just starting to taste the EU’s Green Deal and sizzle. The drastic increase in regulated electricity prices is the first of the tangible consequences of the green agenda


The Green Deal is clearly not working in this country. The jet didn’t start even a day, and the whole nation of people and companies lost electricity. And politicians, frightened by the people’s anger, convene extraordinary press conferences. So again: the goal of the Green Deal is a massive artificial inhibition of the spinning energies of which it is a flame. Such, the march to green energy is encouraged, but it requires a measure of flexibility of the electrification system, and in particular fossil, or nuclear, because of which they are the total cost of energy. They have to feel it on their own money first.

The failure of the electronics is not some minor malfunction, it is about the same death of the Green Deal. After all, politicians don’t tell people that much, if you realize it yourself. So let’s take it for n. Without a massive investment in fossil electricity, the Green Deal will never be able to achieve its ambitious goals. A goal that, if it is a different song, even if you have your ambition, do not have the USA, India, the same ance only to slow down and then distort the process of climate change, or the EU, from a global point of view, represents a small and actually total insignificant emitter of greenhouse gases.

Reduced regulated electricity payments by households by 71 percent. But looking to the future, it is still only a stopgap. Until now, changes in the regulated clauses have usually occurred in the range of units of percent, and often more than one unit. A certain exception was last year, when the Energetick regulan ad reduced the regulated share by almost seventeen percent. Although this dream was undoubtedly a wide-ranging movement, compared to the current 71 percent increase, its extent was only about a quarter. But the time of the diminishing interspersed growth, even the decline regulated by stanzas is over. Even so, the proposed outdoor regulated clause under the Energy Regulatory Act is excessive and could be spread over at least two years.

Energy regulation and daily regulation in the striking proposed externally regulated clause takes into account, in particular, the fact that the price of electricity is still relatively high in the Czech Republic, despite a sharp drop compared to the astronomical highs. The price of power electronics purchased for the year ahead is now roughly 230 percent higher in the Czech Republic, not the average of 2014 and 2019.

This increase in electricity prices in the hundreds of percent is due to several factors.

In particular, it concerns the effects of the war on Ukraine and the extraction of the essentials of the EU from relatively cheap Russian energy, especially gas. According to it, it is a result of the EU’s green agenda, its main goal, in accordance with the set of regulations in the form of the amended EU Green Deal, is to achieve carbon neutrality by 2050. This includes, for example, health emission allowances. The price of EU emission allowances has increased by roughly 400 percent in the last five years.

Factors such as, for example, the so-called German energy transformation have played a role in the increase in the price of electricity Energiewende as n the related deviation of Germany from operating relatively cheap production of nuclear electronics.

The rapid growth of electricity prices on the European stock exchanges, including in the Czech Republic, is noticeable from the second half of 2021. In the fifth year, people in the Czech Republic will consider it the most fuel to date, even in the regulated component of their payments for electricity.

The relative high cost of electricity also increases the cost of electricity to cover the loss of electrification of the system, as well as the general cost of providing support services. As of 2021, investment costs in the electrification system have increased, which will drive up the prices of construction work and materials. In addition, due to their inexhaustible nature and strong dependence on unpredictable weather conditions, the growing number of renewable energy sources involved in the electrification system requires a greater element of flexibility, for example in the form of daily accumulation, which again increases the price of electricity for end consumers from households and companies.

Another source of growth regulated by electricity prices is the government’s intervention in the form of ending the payment of the subsidy for renewable energy sources. In the fifth year, this payment will be made by the households and companies themselves, not from public budgets. However, the team wants to contribute to the recovery of public finances. This year, the payment was released, so she took it upon herself, so that the economy could at least get a little relief from expensive energy.

After the drop in the prices of electrical appliances, I now have a clear feeling that this lion is not for you. From the fifth year onwards, the government for households and companies will repeat payments related to changes in technical losses in the transmission and distribution system, or payments for support services.

To sum up, in the first place the regulated price of electricity components will be reflected in the actual marked increase in the power of electricity on the EU stock exchanges, which will be more noticeable in 2022 and 2023, and then the fact that, unlike last year, the government will not have expensive energy for households and to relieve companies at the cost of increasing public debt. The government has fallen into its own trap here. Being in opposition for so long saved the public from disruption, even bankruptcy of public finances, and apparently she saw this insubordination herself. And now porn has to take steps that seem to heal the public finances. We only note that on the day of the ratings, the agency did not burn down our rating either last year or this year. Agency Standard & Poors in its January assessment, it declares the state of domestic public finances to be solid and the debt to be nominal. This can go before the acquisition of the legislation for the consolidated package.

It’s stupid of you to realize that the Green Deal is built on massive subsidies, and thus a lot of debt, is in itself crippling the EU economy and worsening the lives of the people (due to the combination of increased taxes and their wages). In addition, the Green Deal relies on extremely low rates, artificially manipulated by the European Central Bank in recent years, by printing a trillion euros. For these trillions, in turn, the salary will increase in the form of high inflation.

It is not surprising that the shares of key manufacturers of internal turbine power plants in the EU, such as Siemens Energy or Orsted, have fallen sharply in the middle of the year. These years, the manufacturer of internal turbine power plants grind like this, are necessary to curb the unusually high inflation, which was greatly contributed by the first previous extremely low, zero years and the uncontrollable printing of a trillion euros. The shares of Germany’s Siemens Energy have been down by some 75 percent since the middle of 2020 and 2021 (see chart 1 no), because this company will give the German government about 400 billion kroner in cash, excluding remediation from the taxpayer’s pocket. Indeed, green energy is not cheap. Denmark’s Orsted even fell by roughly 80 percent, compared to the peak of the green house in the middle of 2020 and 2021 (graph 2 no)… Back then, in the era of unsustainable low, even zero years, the furnace was the watchword of the time, which also sounded like Czech, e Green Deal is a scam.

The Green Deal is a possible mistake, but it’s still a problem, especially for an authoritarian country like Qatar, which finances terrorism. The primary goal of the Green Deal is definitely not energy security and independence from foreign energy, even if politicians sometimes interpret it that way. On the contrary. In Germany’s green agenda, EU countries close their coal mines and natural gas fields, and Germany even shut down its nuclear power plants.

Instead of that, the car flows into the EU from Qatar, i.e. from its sponsor Hamsa, and according to you from the USA or Australia. According to expert forecasts, this is how Germany should be in solar energy in 2025, with 95 percent increased imports from ny…

Shares of the German manufacturer of turbines for internal power plants fell by 75 percent according to Bloomberg data

shares of the Danish Orsted, a producer of turbines for internal power plants, lost even 80 percent.

Luk Kovanda, Ph.D.

Chief Economist, Trinity Bank



Trinity Bank has been operating on the financial market for 25 years, and the transformation of the Moravský Penn status of the cooperative was created. It has more than 92,000 clients and its balance sheet amount exceeds K65 billion.

Trinity Bank specializes in private and corporate banking, and for individuals, it focuses mainly on deposit and savings products, which offer superior value for money.

More information at:

The article is in Czech

Tags: starting taste EUs Green Deal sizzle drastic increase regulated electricity prices tangible consequences green agenda


PREV A reward of CZK 300 per month for connection with Air Bank and a discount of CZK 1,000 on the purchase of a device –
NEXT City of triumph failure. Wildly overvalued co-working giant WeWork will soon file for bankruptcy, according to media