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Factsheet for measure CZ-2022-40/2788 – measures in Czechia

State allowance for energy and waived taxes for renewable energies

Státní příspěvek na energie

Country Czechia , applies nationwide
Time period Temporary, 01 October 2022 – 31 December 2023
Context COVID-19, War in Ukraine
Type Legislations or other statutory regulations
Category N/A
– Support for energy bills
Author Aleš Kroupa (Research Institute for Labour and Social Affairs)
Measure added 02 September 2022 (updated 03 May 2023)

Background information

Due to disproportionately rising costs, the state's contribution to energy was introduced. The contribution takes the form of a subsidy from the state budget for energy suppliers. The contribution was introduced by Government Decree No. 702 and No. 703 of 24 August 2022, which regulates the implementation of Act No. 232/2022 Coll., which amended Act No. 458/2000 Coll. , the so-called Energy Act and Act No. 165/2012 Coll., on supported energy sources.

Content of measure

Based on the state's contribution to the given household, the energy supplier will reduce the electricity, gas, and heat prices. The subsidy is reflected for the first time in payments for October 2022. At the same time will apply the waiver of the fee for renewable sources, which is part of the price of electricity and amounts to CZK 495 (€20) for each megawatt hour of electricity. The remission of fees is to last for the whole of 2023.

The amendment to the Energy Act also gives greater powers to the government, which will be able to respond flexibly to the ever-evolving situation and, if necessary, declare a state of emergency. If such a situation arose, the government could impose new obligations or set some restrictions on energy companies.

Use of measure

Every household that is a consumer of gas, electricity or heat will be entitled to the subsidy. The subsidy will not apply to companies, they can only use the waiver of fees for renewable resources.

For October to December 2022, households received a contribution in the amount of CZK 2,000 to 3,500, depending on the type of electricity price distribution rate. Every household that is a consumer of gas, electricity, or heat was entitled to the subsidy. From 1 January 2023, the contribution will no longer apply, it was replaced by a cap on energy prices valid throughout 2023. Waived tax from renewable energies is valid until the end of 2023 too.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Applies to all citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement as case not in social partner domain No involvement as case not in social partner domain
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

No involvement.

Views and reactions

No views.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      D - Electricity, Gas, Steam And Air Conditioning Supply D35 Electricity, gas, steam and air conditioning supply

This case is not occupation-specific.

Sources

Citation

Eurofound (2022), State allowance for energy and waived taxes for renewable energies, measure CZ-2022-40/2788 (measures in Czechia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/CZ-2022-40_2788.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.