Gas for three crowns, electricity for six. The government has capped energy prices
“We decided on a national solution to the current high energy prices. We will cap the price of electricity at six crowns including VAT per kilowatt-hour and the price of gas at three crowns,” said Prime Minister Petr Fiala (ODS) at Monday’s press conference, which took place after the government meeting.
Minister of the Interior Vít Rakušan (STAN) added that including the regulated component, the total price of electricity will be between seven and nine crowns per kilowatt hour. According to her, a model household that also heats with electricity should save up to 111,000 crowns per year after roofing. The estimate of the price of electricity without setting the ceiling was about 12 crowns per kilowatt hour.
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The capped prices apply to households and entrepreneurs, and public institutions will also be able to purchase for them. According to Minister for Regional Development Ivan Bartoš (Pirates), the state already has the option of having a state trader under the Ministry of Finance, but the goal is to have this trader under the Ministry of Industry and Trade.
The price for businesses should be clear on Wednesday after negotiations with the business association. Minister of Industry and Trade Jozef Síkela (for STAN) discussed appropriate measures with professional unions already on Monday.
Finance Minister Zbyněk Stanjura (ODS) calculated the budgetary impact of the newly adopted measure at a maximum of 130 billion crowns, but it will depend on the development of energy prices in the future. “The state will use the mobilized revenues from all state-owned companies, the prepared tax on windfall profits and revenues from emission allowances for the costs,” explained Stanjura after the government meeting.
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The amendment to the energy law will now have to be approved by both chambers of the parliament. The measure, which the government is responding to sharply rising energy prices, should come into force in November. Electricity and gas suppliers will thus have to recalculate the advances paid by customers.
Previous measures
The wholesale price of electricity on Friday ended at EUR 496 (CZK 12,150) per MWh, and at the end of the holidays it rose to EUR 984 (CZK 24,100).
The state has now set a maximum price of 6,000 crowns for power electricity per megawatt hour, including regulated components, customers will pay from 7,000 to 9,000 CZK per megawatt hour. According to the energy company ČEZ, the average annual consumption of electricity in a household is about three megawatt hours. After capping electricity prices, the average household would pay between 21 and 27 thousand crowns per year.
In those that were on the stock exchanges at the end of the holidays, the household would pay 72,300 crowns per year just for the power part of the electricity.
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The government has previously approved a so-called energy-saving tariff to help households with high energy prices. According to the Minister of Industry and Trade Jozef Síkela (for STAN), this year it will continue in the originally approved form. “Regardless of these measures that will come into effect,” Síkela said. Next year, however, according to Síkela, aid could already be more targeted where measures establishing a ceiling on energy prices would not be sufficient.
It is also still true that the state expects to waive the fee for renewable sources from this October and throughout next year.