Minister Jurecka acknowledges that although the situation has been partially managed through energy price caps and housing benefits, continued austerity measures are necessary to mitigate the impact. As the upcoming heating season approaches, preparations are underway to address the challenges posed by rising energy costs.

The increase in energy prices traces back to multiple factors. Two years ago, the energy market experienced upheaval after the collapse of the Bohemia Energy supplier, affecting a significant number of customers and leading to considerable hikes in monthly payments. Furthermore, the Russian invasion of Ukraine and the subsequent conflict played a role in driving energy prices higher.

Vulnerable groups have been particularly affected, with retirees witnessing energy costs rise by 73% this June compared to two years prior. Single-parent families also face a 66% increase in energy expenses during the same period. Households, on average, have seen their net income shrink by 5.6% over the last two years due to escalating energy costs. The impact on pensioners has been even more pronounced, resulting in a 9% reduction in disposable income after accounting for energy expenditures.

In response to these challenges, the Czech government is implementing targeted measures to alleviate the burden on households. These measures include support for house insulation, the replacement of windows and doors, and the adoption of photovoltaics. Notably, the Environment Ministry’s New Green to Savings Light program has disbursed approximately 3.7 billion crowns to over 33,000 applicants, with an average support amount of 110,514 crowns.

As energy costs continue to impact the economic well-being of households, policymakers are striving to strike a balance between managing these costs and ensuring the sustainability and efficiency of energy usage in the country.