In a bid to alleviate the financial burden on large corporations facing a potential surge in renewable energy payments next year, the Czech government has unveiled plans to offer financial relief. The decision comes after a meeting with representatives from various industrial unions, with the Ministers of Finance, Zbyněk Stanjura, and Industry, Jozef Síkela, in attendance. While the exact amount of the contribution remains undisclosed, the government aims to finalize the details within the next two weeks.

Finance Minister Stanjura emphasized that certain energy-intensive sectors may witness a significant rise in energy expenditures in the coming year. The government is committed to finding a timely solution to address this concern. Industry Minister Síkela expressed support for the possibility of providing state aid with renewable energy payments throughout the year, rather than adhering to the current annual frequency.

The Energy Regulatory Office recently announced that the regulated part of the electricity price for 2024 will see a substantial increase of about 106 percent for companies at high voltage and 191 percent for those at very high voltage. Although a slight reduction from the proposal in October, the increase remains substantial. Notably, a significant portion of this increase is attributed to payments for renewable sources, which the government plans to partially cover.

The focus of discussions revolves around these specific payments, with Minister of Finance Stanjura evaluating the outcome of this year’s state budget to determine the availability of funds for this purpose. Jan Rafaj, the president of the Industry and Transport Union, confirmed that discussions are ongoing, and the government is exploring the possibility of utilizing leftover funds from the state budget to provide targeted assistance.

Further details regarding the financial relief plan are anticipated by the end of the upcoming week. The urgency is underscored by the need to announce the plan by mid-December to enable companies to incorporate the information into their pricing strategies and avoid potential inflationary effects. Rafaj emphasized the importance of this timely announcement to allow businesses to adjust and make informed decisions regarding their pricing structures.

Article by Prague Forum