MIT and ERO recommend a rapid transition from DPI
Updates: 10/27/2021 5:35 PM
Released: 27.10.2021, 12:34
Prague – The Ministry of Industry and the Energy Regulatory Office (ERO) recommend that people switch from a supplier of last resort (DPI) to a standard energy supplier as soon as possible. According to Deputy Prime Minister and Minister of Industry Karel Havlíček (YES), they will then have a better price or can better solve individual problems, for example through an installment calendar. At the same time, regular suppliers budget advances for the whole year, while DPI manages expected consumption for the next six months. Havlíček and the chairman of the ERO Council Stanislav today’s Trávníček said this at a press conference. The Ministry of Industry and Labor and the ERO are preparing measures against rising energy prices.
Electricity and gas are significantly more expensive. It affects both households and businesses. 900,000 customers of the Bohemia Energy group, which has ended, must look for a new energy supplier. Other companies also announced the termination of their activities. People have six months to find a new supplier. For this time, they are taken over by other companies, suppliers of last resort. Many people now have to pay many times higher advances than before.
In the case of electricity supplies, DPIs are currently, depending on the specific region of E.ON Energie (southern part of the Czech Republic), Pražská energetika (Prague and its immediate surroundings) and ČEZ Prodej (central and northern Czech Republic). For gas, E.ON Energie (South Bohemian Region), Pražská plynárenská (Prague and its immediate surroundings) and innogy Energie (rest of the Czech Republic).
“If they switch to a standard supplier, he can buy energy for a longer period, not for a short one, when prices are high, which means that he will have cheaper energy,” Havlíček said.
According to Trávníček, the ERO appeals to energy suppliers to comply with individual agreements on repayment schedules, especially with regard to advances. At the same time, suppliers should offer short-term products, not just for two or three years.
At the same time, the Ministry and the ERO recommend using electronic tools when switching to a standard supplier.
Representatives of both institutions also pointed out the significant difference in the monthly advances at DPI and the regular supplier. While regular advance suppliers are budgeted for the whole year, DPI manages expected consumption for the next six months. “Given that it will be the winter months, this consumption is much higher, especially for households that heat with electricity or gas. “Said ERO spokesman Michal Kebort.
Due to high energy prices, the government last week approved a draft of a new law that will reduce the VAT rate on electricity and gas to zero from 1 January next year, for the entire coming year. The amendment will head to the Chamber of Deputies. Zero VAT will also apply to electricity and gas in November and December this year.
At the same time, the cabinet is suitable for the fact that the household will not pay a fee for renewable sources from next year with an average consumption of three megawatt hours, this is the beginning of a maximum of 1,500 crowns per year.
The Cabinet also approved a proposal to transfer part of the money from the proceeds from the sale of emission allowances to the state budget. In total, it should be about 17 billion crowns, which it wants to use to mitigate the social impact of the current increase in energy prices. Now this money goes to the Modernization Fund. The change should apply for the next two years. The plan is criticized by the Confederation of Industry and Transport, according to which such a step will fall on the company. The Ministry of the Environment, to which the Modernization Fund belongs, rejects this.
The Ministry and the ERO are preparing measures against rising energy prices
The Ministry of Industry and Labor and the Energy Regulatory Office (ERO) want to present a set of measures within a few days that would mitigate the effects of energy growth on households. It should include social benefits and other steps. After today’s joint meeting, the political deputy of the Ministry of Labor Robin Povšík (ČSSD), the square of the Minister of Industry René Neděl and the member of the ERO council Ladislav Havel told the press. The solution options have not yet been specified in more detail. Negotiations will continue. Today, Prime Minister Andrej Babiš (YES) informed about the extraordinary aid.
“We will come in a matter of days with a series of clear measures that will help people. It is necessary not to succumb to fear. The government and the entire political representation agree that in a matter of days there will be clear measures to prevent people from getting into executions and debt traps,” said Povšík . According to him, people should not “be subject to the current rapid pressures to pay advance invoices immediately”.
Electricity and gas are significantly more expensive. It affects both households and businesses. 900,000 customers of the Bohemia Energy group, which has ended, must look for a new energy supplier. Other companies also announced the termination of their activities. People have six months to find a new supplier. For this time, they are taken over by other companies. Many people now have to pay many times higher advances than before. “We came up with the idea of where it is necessary to involve other ministries and ensure that people do not receive such horrible invoices,” added Povšík.
According to Babiš, this is the payment of benefits. “We are addressing the possibility of providing additional assistance within the institute of emergency immediate assistance in addition to VAT reduction and compensation for POZE (renewable energy charges), which we have already announced.
Extraordinary immediate assistance is a single dose of material need. According to the law, the income and property of applicants and their relatives and other facts are examined for the allocation of this support. Only people in serious need can get it.
People can now receive two housing benefits. The contribution is one of the state social support benefits. It will be achieved by those for whom 30 percent of income is not enough for adequate housing and 35 percent in Prague. The benefit corresponds to the difference between the set normative costs and 0.3 or 0.35 times the income. He considers 38 square meters to be adequate living space for one person, 52 for two, 68 for three and 82 meters for four or more people. The supplement is for people in material need. He then has to adjust the housing expenses so that the applicants have a livelihood left. According to Povšík, legislative regulation of benefits is being prepared due to higher prices.
According to Neděla, the benefits represent just a “snippet” of the solution, which must be comprehensive. The ministries and the regulator will continue to discuss the set of measures. “We have some ideas for the ERO within the limits of the legal order, we want to discuss it in detail,” Havel added.