The management of Prague has approved a ban on the sale of energy, it will enter into force in March
Updates: 21.02.2022 11:52
Released: 21.02.2022, 11:52
Prague – The ban on door-to-door sales of energy will take effect in Prague from the beginning of March. The new regulation, which responds to the market situation after the end of some energy suppliers, was approved today by city councilors. Contrary to the original wording, the ban, based on the comments received, also includes the sale of electricity or gas in public places outside business premises. Municipalities can ban the sale from January, available as an amendment to the Energy Act.
Last October, it announced the end of the activities of the Bohemia Energy group, which supplied energy to approximately 900,000 clients in the Czech Republic. Other small contractors followed. “A number of actors have already begun to take advantage of this difficult situation, including those called ‘energy bullies’, which offer suppliers through doorstep selling and push citizens – especially vulnerable groups such as the elderly, single mothers and others – to enter into very unfavorable contracts.” stands in the approved document.
In Prague, the sales ban set by the city’s market regulations has been in place for several years. However, it is subject to the Trade Licensing Act and, according to the municipality, is not applicable to dealers with the Energy Act. The new regulation is based on an amendment to the Energy Act, which allows municipalities to specifically ban the sale of energy. A fine of up to CZK 100,000 will be imposed for violations from March.
The Bohemia Energy Group was the largest group of alternative energy suppliers in the Czech Republic. He cited the extreme rise in energy prices on the markets as the reason for the closure last year. Other companies also ended after Bohemia Energy. Client companies have switched to the so-called supplier of last resort regime, in which energy must supply them with a statutory supplier designation for a period of six months. During this time, clients must secure new contracts.