- Hans Weber
- December 6, 2023
Electricity Prices in the Czech Republic May Increase Next Year, Says Minister of Industry and Trade
The Minister of Industry and Trade, Jozef Síkela, has indicated that electricity prices in the Czech Republic may increase from the beginning of next year. While he suggested the price hike might be a maximum of ten percent, he expressed hope that it could be less or even avoided entirely. This potential price increase is attributed to the reintroduction of the renewable energy fee for households and businesses.
Síkela acknowledged that there is uncertainty about the exact amount of the electricity price increase. The main reason for this potential hike is the government’s decision to reintroduce a portion of the renewable energy fee for households and businesses. Previously, this fee was temporarily transferred from consumers to the state in October last year to provide relief during high energy prices. Starting next year, households and businesses will pay a fee of 599 korun for each consumed megawatt-hour, which is expected to offset the decrease in energy prices this year.
Síkela emphasized that implementing a widespread measure to support energy prices is no longer necessary when electricity prices are decreasing. He believes it makes more sense to focus on providing support to households that may face difficulties due to price increases, rather than applying a blanket measure.
The final decision regarding electricity prices will be made by the Energy Regulatory Office (ERÚ). Síkela believes that the state should allow households and businesses to benefit from a portion of the market decline. He also mentioned that the state has allocated 110 billion korun this year to mitigate the energy crisis, which includes the costs of price caps. The validity of these price caps is expected to end at the close of this year.
For families who may encounter challenges with the reintroduction of the renewable energy fee, there are alternative forms of support available, such as housing benefits. The government’s decision to reintroduce the fee reflects a balancing act between addressing the financial impact of the energy crisis and maintaining support for renewable energy initiatives.
Article by Prague Forum