BH Securities Chief Economist Štěpán Křeček | PHOTO: Štěpán Křeček / with the permission of the author
An agreement between manufacturers, the state and other partners is beginning to emerge that the price of electricity at the Czech level could be capped at around 200 euros per megawatt hour, Prime Minister’s adviser and BH Securities economist Štěpán Křeček told Czech Radio Plus. A pan-European solution, according to him it may take longer and the measures will not be as sharp as the Czech Republic would like.
“Friday’s European meeting is crucial. But that solution may take a longer time. And then, in order for all the EU countries to unite, the measures will probably not be as sharp as we would like and as we would need. That’s why national solutions will be introduced in addition to European solutions,” suggests Prime Minister Petar Fiala’s advisor (ODS).
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“I can reveal new information here that the producers, the state and other partners are beginning to agree that the price of electricity at the Czech level could be capped at around 200 euros per megawatt hour,” added Křeček in the Pro and Against program of Czech Radio.
A pan-European solution to the energy crisis will be discussed in Brussels on Friday. European ministers should discuss several options. The Czechia will want to include in the negotiations, for example, the so-called Iberian model, which would separate the prices of electricity and gas on the market. According to Minister Síkela (STAN), this would help especially in the case of electricity, the prices of which, according to his estimate, could be reduced to the level of about 200 to 400 euros per kilowatt hour.
Conversely, in the case of gas, prices would probably remain at a similar level as they are now. At the same time, Síkela pointed out that this model can lead to greater gas consumption, which could threaten supplies in Europe in the event of a severe winter.
Another option is proposed by the European Commission, which wants to cap prices for some cheaper sources of energy, such as nuclear power plants. According to Síkela, tax adjustments for energy producers and distributors are also an option.
Síkela also wants to open a discussion on the possibility of limiting sales of emission allowances on Friday. According to him, for example, the annual reduction of the allowance program would not mean a deviation from the EU’s climate goals. “The situation is extraordinary, which is why it would also be an extraordinary measure,” he emphasized. At the same time, however, he added that he does not give the possibility of limiting the program with emission allowances much chance, because the European Commission is against it.