The Czech Senate supported the decision of the House of Representatives to limit the government's proposed ceiling on energy prices - electricity and natural gas. The amendment to the energy law now needs to be signed by the head of state in order to take effect. However, this can be considered a formality, since President Milos Zeman has already indicated that he agrees with the amendment.
According to the government decision, one kilowatt-hour of electricity will cost six kroons (€0.24) in the future, and one kilowatt-hour of natural gas will cost three kroons (€0.12). The maximum prices already include taxes.
The five-party centre-right government led by Petr Fiala intends to respond with this ceiling to the recent sharp rise in energy prices. The amendment will also increase protection for retail consumers who make energy prices dependent on stock prices in their contracts.
To amend the law, the government will have to issue a regulation that will clarify the details, in particular, the maximum prices and to which categories of consumers they apply. For example, the energy price ceiling does not yet apply to large industrial consumers. However, the government is also dealing with this issue.
According to the law, energy suppliers will have the right to compensate their proven losses from the state.
According to the report of the Senate meeting, the government is expected to issue a much-awaited decree on October 5. This will come days after an extraordinary meeting of EU energy ministers on September 30 to discuss the European Commission's proposals for a European price cap.
Czech Finance Minister Zbynek Staniura said earlier that the planned measures would cost the state treasury about 130 billion crowns (€5.27 billion). The government wants to cover most of this amount primarily by taxing the windfall profits of large energy suppliers, the banking sector and the oil industry. The minister estimates that this emergency tax could bring about 70 billion crowns (€2.84 billion) into the state treasury next year.
As bbabo.net previously reported, the British government is setting electricity bills for businesses at about half the average price level forecast for the winter.
bbabo.Net