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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure CZ-2023-1/3129 – measures in Czechia

Cap of electricity and gas prices

Stanovení cen elektřiny a plynu v mimořádné situaci

Country Czechia , applies nationwide
Time period Temporary, 01 January 2023 – 31 December 2023
Context War in Ukraine
Type Legislations or other statutory regulations
Category N/A
– Support for energy bills
Author Soňa Veverková (Research Institute for Labour and Social Affairs) and Eurofound
Measure added 23 February 2023 (updated 21 March 2023)

Background information

On 5 October 2022, the government approved Regulation No. 298/2022 Coll., which sets out the rules for capping energy prices.

The regulation was amended at the end of 2022 and thus regulates changes in specified categories of customers whose consumption of electricity or gas is subject to a ceiling price set by the state.

Content of measure

The measure will now help not only households with high electricity and gas prices, but also small and medium-sized businesses, government institutions, schools, health and social service providers, public transport operators and other entities.

In the case of electricity, price caps will cover the entire consumption and will be capped for all households and other entities connected at the low voltage level. For other SMEs connected to high and very high voltage levels, the cap will apply to 80% of the highest consumption in the last five years.

In the case of gas, the entire consumption will be capped for all households and small gas consumers with an annual gas consumption of up to 630 MWh. The gas price cap will continue to apply to all small and medium-sized enterprises with an annual consumption of between 630 and 4,200 MWh, but only to 80% of their highest consumption in the last five years.

The price for the supply of electricity is set at 5 CZK/KWh without VAT, i.e. 6.05/KWh with VAT. For gas, the price ceiling will be introduced at 2.50 CZK/KWh, i.e. 3.025/KWh including VAT. The price ceiling refers to prices in 2023.

According to the amendment to the government regulation, from 1 January 2023, the aid will also apply to large enterprises under the same conditions as apply to small and medium-sized enterprises.

Use of measure

According to the estimates of the Ministry of Finance, aid in the form of capping energy prices could reach up to CZK 130 billion. Further information is not available.

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 No involvement
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

The trade unions demanded that the price ceiling for gas and power electricity be reduced to the level recommended by the European Commission, on the part of the producer and not the customer, so that it would not be necessary to pay extra for the prices from the state budget.

Sources

  • 23 February 2023: Vláda schválila zastropování cen energií. Pomůže jak domácnostem, tak firmám (www.mpo.cz)
  • 23 February 2023: usneseni vlády č. 842 z 5.10.2022 (odok.cz)
  • 23 February 2023: Nařízení vlády č. 298/2022 Sb. o stanovení cen elektřiny a plynu v mimořádné tržní situaci (www.zakonyprolidi.cz)

Citation

Eurofound (2023), Cap of electricity and gas prices, measure CZ-2023-1/3129 (measures in Czechia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/CZ-2023-1_3129.html

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