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Government Allocates 3.5 Billion Crowns to Assist Energy-Intensive Companies with Energy Prices

The government decided two weeks ago that the state would release 3.5 billion crowns to help energy-intensive companies with energy prices. The money will be used to reduce the payments of companies at the level of high and very high voltage for renewable energy sources, by an average of two thirds. The assistance is intended for almost 25,000 collection points.

According to the government’s original plans, the state was supposed to provide a subsidy of 9.35 billion crowns for subsidized energy sources (POZE). This will now increase by 3.5 billion crowns. The ERO has now reflected this increase in the payments paid by businesses connected at high and very high voltage levels according to their reserved input power.

“Immediately after the government decided to increase the subsidy, we launched public consultations to change the November price decision. The payment of the contribution to POZE according to the reserved input has fallen to less than 116 thousand crowns per megawatt per month, which, compared to the original price decision, means a drop of more than two thirds,” said Stanislav Trávníček, chairman of the ERÚ Council.

Analysts: Most customers will pay extra for electricity next year

The charge for POZE was originally set at 495 crowns for each megawatt hour consumed for all customers. After the adjustment, companies at the very high voltage level will pay an average of 328 crowns per megawatt hour, and at the high voltage level 388 crowns per megawatt hour. For consumers connected to low voltage, it remains at the original level.

The revised price decision will be effective from the beginning of next year.

The regulated component of the energy price will increase significantly next year. For households, electricity will increase by 65.7 percent year-on-year, which should mean about CZK 1,077 per megawatt hour (MWh) more. The average household, which according to data from energy companies consumes around three MWh per year, will pay approximately CZK 3,232 more for the regulated portion of electricity next year. For gas, the regulated component will be higher by 38.8 percent, which is an increase of about CZK 125 per MWh. Even more significantly, the regulated component will rise despite adjustments for large customers.

The price of energy consists of a commercial component, which is determined by suppliers, and a regulated part, which is managed by the state. Next year, the regulated component of electricity will make up over 39 percent of the final price for households, and roughly 20 percent for gas. For large customers, the share of the regulated component in the final price is lower.

They produce heat and electricity from the gas from the landfill in Prague’s Letňany

2023-12-29 09:14:47
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