Due to the high cost of energy, the Czech Republic cannot enter into subsidy competitions with Germany, given the size of the economy, it would lose in them. Finance Minister Zbyněk Stanjura (ODS) told journalists this on Friday. At the same time, he stated that Czech companies have other support options than general compensation for energy price increases. The German government announced on Thursday that it will provide relief of up to 12 billion euros (over 295 billion crowns) to the local industry due to high electricity prices.
The black scenario in the form of a noticeable increase in the price of electricity and gas is coming true
| Photo: Shutterstock
“If we allow subsidized races, we will lose Germany, the richest European economy. Our aim is to see the level of subsidies reduced across Europe because it hurts the richest economies,” he said Senior.
“It is fair to take all forms of support that energy-intensive operations receive and compare them internationally. For example, here it is possible to draw subsidy money from the modernization fund, which is in the order of tens of billions, this is not the case in Germany,” added the minister.
Read Deník’s interview with Zbyňek Stanjura, among other things, about subsidizing profitable companies:
It is the state’s mistake to subsidize profitable businesses, says Minister Zbyněk Stanjura
According to him, the government is not going to change its mind and continue to pay the cost of renewables for consumers electricity and on distribution. According to the minister, this would require the withdrawal of approximately 50 billion crowns from other budget chapters, which, given the experience of the debate on the form of the state budget, he does not see room for. Stanjura also expressed his belief that the Energy Regulatory Office (ERÚ) will further reduce the planned increase in the price of the regulated component energy prices.
For households, according to the ERO’s first proposal, the regulated component of the electricity price should increase by 71 percent year-on-year. It will rise even more significantly for large consumers, at the high voltage level by 113 percent year-on-year and at the very high voltage level by 206 percent. The ERO will present the definitive form of the regulated component of energy prices at the end of November.
On Friday, Stanjura also rejected the possibility of paying the fee for renewable energy sources from the revenue from emission allowances. According to him, roughly half of the 80 billion crowns that the allowances will bring is already included in the state budget revenues. The other half is earmarked for new investments in green technology and cannot be used to pay for renewable installations made in 2009 and 2010.
More expensive electricity? The regulated part will increase by almost three quarters, ERO suggests
According to the minister, socially weak households affected by the increase in electricity prices can draw a housing allowance. He considers this form of targeted support to be more effective than general financing of energy to all customers.