Energy prices will be capped for small and medium-sized companies and gas heating plants

Energy prices will be capped for small and medium-sized companies and gas heating plants
Energy prices will be capped for small and medium-sized companies and gas heating plants

Representatives of Prime Minister Petr Fiala’s (ODS) advisory team told journalists today. The setting of maximum energy prices will also apply to gas heating plants.

The government has agreed to introduce a maximum price for electricity and gas for households, self-employed people and small and medium-sized companies. The ceiling for power electricity without distribution costs was set at 6,000 CZK per megawatt hour (MWh), which corresponds to roughly 200 euros without VAT (4,900 CZK) per MWh. Together with distribution, the end customer should pay approximately 7,000 to 9,000 crowns per MWh for electricity. For gas, the ceiling should be 3,000 crowns per MWh, which corresponds to roughly 100 euros per MWh without VAT.

The Prime Minister’s advisors expect that the amendment to the Energy Act, which will enable the establishment of energy price ceilings, will have time to go through the entire process by the end of September, including the President’s signature. The government will then be able to issue individual regulations that will clearly determine the aid. It is expected that the customers with regulated energy prices will include gas heating plants that provide heating for households.

According to Prime Minister Petr Fiala (ODS), large consumers of electricity and gas will be able to draw support from November 1 due to high energy prices. 30 billion crowns are prepared for the program. He said this on Wednesday after the government meeting. The Minister of Industry and Trade Jozef Síkela (for STAN) specified that the call for the subsidy title should be prepared by November 1.

A member of the prime minister’s advisory team, Zdeněk Zajíček (ODS), said that the government is also counting on the fact that energy producers will have to compulsorily offer part of their production to the state, which will purchase it and distribute it to public institutions and municipalities through a state energy trader. He added that there will also be a fixed price at which producers will provide energy to the state.

In connection with the establishment of a price ceiling for energy for customers, the state expects to compensate traders. Traders will probably be forced to sell at prices even lower than what they were able to buy energy for. The government sets regulated costs and margins, which it will compensate traders on an ongoing basis. On-going compensation will be essential for traders’ cashflow to have money for, for example, stock exchange deposits.

The article is in Czech

Tags: Energy prices capped small mediumsized companies gas heating plants

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