The government caps electricity and gas prices

Petr Fiala’s (ODS) government has decided to cap energy prices. The price of electricity will be capped at CZK 6 per kWh and the cost of gas at CZK 3 per kWh.

“We have decided on a national solution to the current high energy prices. We will cap the price of electricity (including VAT) at six crowns and the price of gas at three crowns (including VAT) per kWh,” announced Prime Minister Fiala.

According to Industry Minister Jozef Sikely, the impact on the budget should be no more than CZK 130 billion. It depends on the development of energy prices in the future.

People will already see lower prices in November. It applies to households, merchants, and institutions, such as schools. The price will still be resolved for businesses after Wednesday’s meeting with the business association and the solution within the EU. It should be clear on Wednesday.

According to Interior Minister Vít Rakušan, the price of electricity was threatening to be as high as CZK 12 per kWh in 2023, which many households would no longer apply. The capping at CZK 6 meant that the actual price of electricity would be CZK 9 to 10 per kWh. A model household that uses electricity and heating would save up to CZK 111,000 a year.