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Czech Republic introduces price caps on gas and electricity

gas-stove

Prague, Czech Republic – The Czech government of Prime Minister Petr Fiala has set caps on electricity and gas prices in the face of skyrocketing costs.

Gas and electricity consumption will cost a maximum of 3 Kc and 6 Kc per kilowatt-hour (kWh), respectively, according to the government’s proposal.

The new prices concern households and small businesses and should apply in deposit payments from November 2022. About 130 billion Kc have been earmarked by the state to cover the cost of the scheme, which still must be approved by the lower house of Parliament.

The Senate also announced it would hold an extraordinary meeting later this week to discuss possible measures to alleviate the burden on Czech households and businesses.

Discontent regarding high energy prices and what is seen as the government’s inaction has been growing for weeks in the Czech Republic, with some demonstrations drawing tens of thousands of disgruntled protesters.

Reacting to the new price caps, opposition figures said the move was too little, too late.

Following a meeting of EU energy ministers, the European Commission has started working on a windfall tax on energy producers’ extra profits. Prime Minister Fiala has described the agreement reached last week as “a big move and a success for the Czech EU presidency”.