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The current high energy prices, which peaked in the second half of last year, are due to a combination of several factors. The most important are the economic consequences of the war in Ukraine and the reduction of energy supplies from Russia. However, energy prices started to grow in the year 2021 already, before the Russian invasion of Ukraine, mainly due to the increased demand from renewed industrial operations after the Covid-19 pandemic. The influence of these two factors specifically on the price of electricity is intensified by the way energy is traded on the European market. In a merit order system, the price of electricity is determined by the most expensive resource that is still needed to meet demand. At the moment, because of the war in Ukraine, that is natural gas.
The Czech government responded to the abrupt increase in energy prices with the following measures. On 30 December 2022, it issued decree No. 463/2022, which sets energy price ceilings for the years 2022 and 2023. The regulation originally applied to households and small and medium-sized businesses. For the year 2023, energy prices are capped for households, small, medium and now also for large enterprises.
Large enterprises can benefit from the Business Support Programme for increased costs of natural gas and electricity due to extraordinary price increases. The aim is to help businesses entities with high energy prices and support their business activities. Support under this call covers the period from 1 February 2022 to 31 October 2022. Requests for subsidy are due by 8 February 2023.
Another form of support are the national operational programmes managed by individual ministries. The programmes are co-financed by the European Union. The programmes are intended for both public and business entities. For companies struggling with high energy prices, subsidies from these programmes may be a new opportunity to save costs and improve their economic situation. These are mainly the following operational programmes.
It supports the following areas:
The programme is intended for the public sector, businesses and households. The scope of the programme is in the entire Czech Republic outside the capital city of Prague.
It supports the following areas:
It supports the following areas:
The programme is intended for business entities. The scope of the programme is in the entire Czech Republic outside the capital city of Prague.
It supports the following areas:
The programme is intended for public authorities, business entities and individuals. The scope of the programme is throughout the Czech Republic.
It supports the following areas (it is possible to also obtain a bonus for a combination of multiple measures):
The program is primarily intended for individuals, owners of family and apartment buildings and housing cooperatives. The scope of the programme is throughout the Czech Republic.
The issue of high energy prices is approached on two levels. First of all, the government has set the maximum prices for consumers and businesses by capping energy prices.
The second way is to reduce energy consumption and the energy intensity of buildings and production facilities through measures such as insulating building envelopes, replacing heat and cold sources with more efficient ones or installing renewable energy sources.
The government also supports the development of new technologies that lead to energy savings and cost reductions. These include smart control and smart metering technologies, increased use of renewable energy sources, the use of waste heat and the construction of biogas plants. These measures contribute to reducing greenhouse gas emissions and meeting the limits of the FIT for 55 package.
Author: Libor Kaňák, Petr Paseka
