Smaller businesses welcome the capping of energy prices

Small and medium-sized enterprises welcome the government’s decision that the capping of energy prices will not only apply to households and sole traders but also to these businesses. It is more predictable for them than if they had to apply for compensation.

“It’s clearer for them, and they have more certainty about where they will fall and what will affect them. Since price capping was a priority goal for them, at least they know where they stand and what price they will pay next year,” Josef Jaroš, chairman of the Association of Small and Medium-Sized Enterprises of the Czech Republic (AMSP), said.

The information that the capping of prices at six crowns, including value-added tax per kilowatt-hour of electricity and three crowns per kilowatt-hour of gas, will also apply to companies with up to 250 employees and a turnover of 50 million euros (about CZK 1.23 billion) was announced by advisers to Prime Minister Petr Fiala (ODS) at a meeting with journalists on Thursday.

Until then, smaller firms were unsure whether they would have to apply for price compensation subsidies like large companies.

“The financial compensation based on the temporary crisis framework is more complicated. There is more administration, a waiting period, and a time limit for processing. It will be announced on 1 November. So if I parallel the covid compensation, I expect them to get their hands on the money in the first quarter of next year,” Jaroš said. The capped prices are more favorable for smaller and medium-sized enterprises at the moment.

Vladimír Dlouhý, president of the Chamber of Commerce of the Czech Republic, has a similar view. However, the compensation could be combined with capping in some cases.