LEX OZE 2 and company transformations act head to Czech Chamber of Deputies

Two government proposals with a significant impact on the Czech energy sector have been included on the agenda of the 73rd meeting of the Chamber of Deputies, which will take place on Tuesday, 29 August. The first is an amendment to the Energy Act known as LEX OZE 2, implementing concepts related to community energy, while the second is a highly controversial amendment to the Act on Transformations of Commercial Companies and Cooperatives, known as LEX ČEZ.

LEX OZE 2

The amendment known as LEX OZE 2 has been listed as the first item on Tuesday’s Chamber of Deputies agenda. It introduces concepts such as an energy community, a renewable energy community, an active customer and others. These concepts were introduced by the European Commission as early as 2016, and Czechia has fallen significantly behind in implementing them.

The energy crisis further highlighted the situation, and the Energy Regulatory Office (ERÚ) also sought to mitigate it by pushing the boundaries of its remit and allowing electricity sharing within apartment buildings at the beginning of this year. However, drafting and introducing changes to the legislation falls under the responsibility of the Ministry of Industry and Trade (MPO).

The wording of the government’s proposed amendment itself was accompanied by tough negotiations, pitting lobbyists representing distribution companies, electricity traders and others against representatives of renewable energy sources seeking the least restrictive possible conditions for sharing. The expected date for the first reading was therefore repeatedly postponed. For this reason, the current wording may not be final, and both camps can be expected to seek improved conditions for their side through amendments.

An overview and description of the current wording of the amendment can be found here on a website produced by the MPO.

LEX ČEZ

Unlike the government’s LEX OZE 2 proposal, which has received mostly positive reactions, the same cannot be said of the proposed Act on Transformations of Commercial Companies and Cooperatives. If the amendment were passed in its current wording, a split of the company would require only 75% of the votes of shareholders present at the general meeting. The general meeting would have a quorum if shareholders owning at least two-thirds of the shares attended. The state owns just under 70% of ČEZ.

Many have described the proposal as purpose-built, with Petr Bezouška, a former member of the Government Legislative Council, among its most vocal critics. His commentary on the proposed act can be revisited here.