More EU countries seek to curb energy price impact on consumers, Czech Republic has no concrete steps

Romania and France have joined Italy, Spain and Greece as European countries that have announced in recent days that they are considering measures to reduce energy prices. The Eastern European country is considering capping natural gas prices while introducing a mechanism to compensate households for high energy bills. In France, low-income households will receive compensation of EUR 100 (around CZK 2,500).

Prices on commodity markets have risen to record levels since the summer, mainly due to the increase in gas prices. Despite Thursday's correction, prices remain at levels that could represent a significant burden for businesses and households alike.

The governments of some countries have already responded to this situation. For example, the Spanish government has adopted a package of measures, according to Reuters, which, in addition to mitigating the impact of rising electricity prices, also includes limiting increases in natural gas prices for consumers. Similarly, the Greek government has adopted measures, which should take the form of compensation for households.

As recently as last month, Romania's prime minister also rejected limiting the impact of prices on households. However, this position has now changed as prices have risen further. Prime Minister Florin Citu announced that he would discuss high prices with colleagues at a cabinet meeting. The main options under discussion are capping the price of natural gas and introducing partial compensation for household electricity and gas costs. The Romanian government will coordinate its approach with the European Commission to ensure that the support does not conflict with EU rules.

France has also opted to compensate households, contributing a total of EUR 580 million, or nearly CZK 15 billion, to low-income households. Each household eligible for compensation will receive EUR 100 (around CZK 2,500). Support for industrial companies is also being discussed, with the French government seeking to allocate up to EUR 2 billion (around CZK 50 billion) for this purpose.

Babiš will do everything possible to prevent energy prices from rising

Until the end of this week, there had been no broader discussion in the Czech Republic about limiting the impact of energy prices. The issue was raised more prominently by Czech Pirate Party MP Jakub Michálek during parliamentary questions to Andrej Babiš.

"We will do everything possible to prevent energy prices from rising," Andrej Babiš promised.

Ahead of the upcoming parliamentary election, Czech parliamentary parties have declared their efforts to prevent a sharp increase in energy prices for consumers. They mainly point to the need for Czech self-sufficiency in electricity generation.

According to most parties, one solution that could help is the construction of a new unit at the Dukovany nuclear power plant. "If we are in the next government, and I believe we will be, we will also come forward with a proposal to expand Temelín," Deputy Prime Minister and Minister of Industry and Transport Karel Havlíček told ČTK last week.