Fiala: Czech energy suppliers’ collapse is a failure of the Industry Ministry and regulator, VAT cut is not the way forward

Petr Fiala (ODS), a candidate for prime minister, considers the closure of several energy suppliers to be a failure of the Ministry of Industry and Trade (MPO) and the Energy Regulatory Office (ERÚ). Under different circumstances, Industry Minister Karel Havlíček (ANO) should resign, he said. At present, however, the main priority is helping people who have lost their energy supplier. He does not consider the VAT cut proposed by outgoing Prime Minister Andrej Babiš (ANO) to be the best course of action. Fiala said this today on Czech Television’s Questions of Václav Moravec programme.

According to Fiala, there is undoubtedly political responsibility in the issue of several energy suppliers ceasing operations. If it were not after the election, MPO head Havlíček should resign, he said. In the current situation, the MPO and ERÚ must provide people with good and prompt information, which is not happening, he said. „People are frightened, they do not know what to do, and they see catastrophic reports in the media,“ he said. Fiala called on the authorities to provide consumers with specific guidance. He did not want to comment yet on changes in the staffing of the ERÚ, saying everything would be discussed within the coalition.

„A difficult year and certainly a difficult winter lie ahead of us,“ Fiala added.

He added that the way the current government has managed the economy and allowed energy prices to rise is not good at all. There had been signals for several weeks that some energy suppliers in the Czech Republic were in trouble, he said.

According to Fiala, the current government will not be able to introduce the reduction of value-added tax (VAT) to zero that Babiš plans. He has no information that it has already discussed the matter with the European Union. Nor is it the right approach, he said. It would also apply to people with fixed energy prices who do not need the relief. Moreover, VAT would have to be raised again at some point, resulting in a sharp increase.

„Our experts are already working on it (the solution). We want to come up with both a short-term solution and one for the longer term,“ Fiala added.

In the short term, it would be possible to help the most vulnerable groups through housing allowances, while in the next period people should be encouraged to install solar panels, insulate their homes and create the right energy mix.