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Measures implemented to limit the impact of the energy crisis in the various sectors of the economy

During September, the Czech government has introduced a series of measures to support the economy with regard to increasing gas and electricity prices. These measures specifically concern:

  • Retailers: households, natural persons and small and medium-sized enterprises consuming electricity from the low-voltage level or having an annual gas consumption of up to 630 MWh. The Government will be empowered to issue a regulation through which it will be able to set electricity or gas prices and to impose an obligation to supply or limit trading in electricity. The prices discussed are CZK 6/kWh (EUR 0.24/kWh) for electricity and CZK 3/kWh (EUR 0.12/kWh) for gas.
  • Wholesalers, the “large consumer”: are considered to be business entities from the agricultural, forestry, fishing, mining, quarrying and manufacturing sectors that have an annual gas consumption of more than 630 MWh or has a contract for connection of electrical consumer equipment to the high voltage (HV) or very high voltage (VVN) distribution system. The expenditure support, in the form of a grant, called “Programme of support for increased costs of natural gas and electricity due to exceptionally sharp increase in their prices” will be available from 1st November to 31st December 2022. The government has allocated a total of CZK 30 billion (1,23 billion EUR) for this subsidy, with a maximum of CZK 45 million (1,8 million EUR) per applicant and a maximum of CZK 200 million (8,1 million EUR) for energy-intensive enterprises.

Further support: the approval of this European Regulation will be followed by further support of CZK 30 billion (1,23 billion EUR). This would be support for small and medium-sized enterprises, regardless of their energy intensity, up to 80% of the highest energy consumption in the last five years. However, neither the form nor the detailed conditions of the support are yet known.

Windfall tax: the European Commission is proposing to limit the revenues of non-gas electricity producers by allowing countries to tax up to 100% of profits above a threshold of €180 per megawatt hour (MWh). A national windfall profits tax could be imposed by EU countries on profits from energy already sold.

As a further support measure, an extension of the reduction of excise duty on diesel by CZK 1.5 per litre (0,06 EUR per litre) until the end of 2023 was approved.

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