Czech Government Promises Relief for Big Companies in Energy Costs

The Czech government has announced it will provide financial relief to large corporations next year by covering a portion of their renewable energy payments. The announcement was made following a meeting with various industrial union representatives. The ministers of finance, Zbyněk Stanjura, and industry, Jozef Síkela, were present at this meeting. However, the exact amount of the contribution remains undisclosed.

“Next year, some businesses in energy-intensive sectors may see a drastic increase in energy expenditures. We will find a solution within about two weeks,” Stanjura declared. Síkela added that he had advocated for the possibility of providing state aid with renewable energy payments at any time during the year, not just once as is currently the case.

“If we reach an agreement with the business unions, and I believe we are on the right track, I will be happy to prepare it quickly,” Síkela said. According to him, this measure would enable more targeted assistance without requiring notification from the European Commission.

The Energy Regulatory Office decided on Thursday that next year’s regulated part of the electricity price will increase by about 106 percent for companies at high voltage and by 191 percent for very high voltage. Despite a slight decrease compared to the proposal from the end of October, the increase is still massive. The most significant portion consists of payments for renewable sources, which the state is expected to cover partially.

“We are discussing only these payments. The Minister of Finance is evaluating the outcome of this year’s state budget, whether there will be leftover funds,” confirmed Jan Rafaj, the president of the Industry and Transport Union, to Novinky.

Further details are expected to be announced by the end of next week. “We need to announce this by mid-December so companies can work with it in pricing. Otherwise, there will be an inflationary effect. Those who can pass it on to the prices of their products will do so,” Rafaj said.