The Czech Republic’s Minister of Finance, Zbynek Stanjura, has proposed changes in supporting renewable energy sources as the current system, where households and firms pay nothing for supporting renewable energy, is reportedly unsustainable. As a result, Stanjura is considering a change in the distribution of payments to support renewable energy sources. While households currently pay more than firms, Stanjura seeks to find a more equitable balance between the two.
The total amount of payments for supporting renewable energy sources is also under review by the Ministry of Finance. The government seeks to reduce the total payments to support renewable energy sources. One of the options being considered is the possibility of changing the law, which could limit the subsidies provided.
Since 2006, over CZK 500 billion has been paid for supporting renewable energy sources in the Czech Republic. Until last year, these payments were shared between the government and consumers in their electricity bills. However, the government has fully covered these costs for this year due to high energy prices.
Stanjura is keen to find a solution that will allow for a more sustainable distribution of payments to support renewable energy sources. He has stated that the current system, where the government fully covers the costs, cannot continue indefinitely. The proposed solution is to distribute the contribution between the government, households, and firms again. However, Stanjura is open to discussing a change in the distribution of payments as the current system is biased towards households.
The proposal to change the distribution of payments for renewable energy support is part of a broader effort by the Ministry of Finance to reduce the financial burden on taxpayers. Stanjura has stated that firms, rather than the government, have supported renewable energy sources in the past three years. The current level of support cannot continue and must be reduced or withdrawn.
The Ministry of Finance is currently searching for a solution that will allow for a reduction in the total amount of payments for the support of renewable energy sources. One option being considered is a change in the law, which could potentially limit the subsidies provided. However, Stanjura has stated that all legal risks must be resolved before any changes are made to avoid future litigation from firms receiving these subsidies.
Due to high energy prices, The government decided to fully cover the costs of renewable energy support for this year. However, the government has stated that it will not extend this measure into next year. The expected end of the government’s subsidy for renewable energy will coincide with the end of the limit on energy prices, which was set by the government and will expire next year.
While the details of the proposed changes are still being worked out, it is clear that the current renewable energy support system in the Czech Republic needs reform. Stanjura’s proposals aim to create a more equitable distribution of payments between households and firms and reduce the financial burden on taxpayers.