Regulated Electricity Price Increase Likely to be Less Severe

The projected increase in the regulated portion of electricity prices for the coming year will likely be reduced from 71% to 68%. This was reported by Czech Radio (ČRo) on its website.

Industry and Trade Minister Jozef Síkela stated that the Energy Regulatory Office (ERÚ) has identified savings of three billion crowns. This is said to reduce the growth of the regulated portion of the price by three percentage points. “This is about three billion crowns in prices for ČEPS,” noted Síkela.

According to ERÚ, the state enterprise ČEPS, which operates the transmission system for electricity in the Czech Republic, could have lower costs for purchasing electricity to maintain balance in the system.

“The final pricing decisions, and thus the impacts on specific types of consumers, will be published by ERÚ next week, on Thursday, November 30,” announced the regulatory office spokesman Michal Kebort.

Energy prices comprise the commercial component, determined by suppliers, and the regulated part, administered by the state. The regulated segment accounts for about 40% of the total price of electricity.

Companies and parliamentary opposition have criticized the planned increase in the regulated portion of prices. However, Prime Minister Petr Fiala repeatedly asserted that the end prices of energy next year will increase by a maximum of single-digit percentages compared to this year.

For energy-intensive businesses, the overall price of electricity next year will even decrease after the increase in the regulated part, according to Finance Minister Zbyněk Stanjura.