Czech energy price compensation to end this year; state to consider extending windfall tax

State compensation for high energy prices for households and compensation to companies for price caps will end at the end of this year. Finance Minister Zbyněk Stanjura (ODS) told reporters today that he does not expect the measures to be extended, given developments in energy prices on the markets. Next year, he said, there will be a discussion about whether to continue the windfall tax, which was linked to energy prices.

Stanjura said wholesale energy prices have been returning to normal after last year’s shock caused by Russia’s invasion of Ukraine, and that this is gradually being reflected in consumer price lists. Given this trend, he said, there will be no need to continue the compensation measures next year. At the same time, he does not expect the price caps to be lifted before the end of the year, because some households could face a sharp increase in electricity and gas prices if their suppliers have not yet offered them a price below the cap.