Okamura: Emerging Czech coalition wants to shift renewable energy charges to the state

The emerging government coalition of ANO, SPD and the Motorists wants to shift the cost of supporting renewable energy sources (RES) from households and businesses to the state starting in January. SPD chairman Tomio Okamura told reporters this after a meeting today. The charge for supported energy sources is part of the regulated component of electricity prices, with the overall support for renewable energy financed by both consumers and the state budget.

"As far as energy prices are concerned, if a government is formed by the end of the year, we would like to reduce the regulated component from January," Okamura said.

He said this would not require approval from the Chamber of Deputies; the government could decide on it by its own regulation, which the Energy Regulatory Office (ERÚ) would then reflect in energy prices.

In the past, the state assumed the full cost of supporting RES as an extraordinary measure during the energy crisis. Once the crisis eased, the cost was again shared between the budget and consumers.

The ANO movement also promised to reduce the regulated component of electricity prices before the election. Its representatives described high energy prices as a problem for the competitiveness of Czech industry. According to the Energy Market Operator (OTE), the total annual contribution paid to support energy sources in Czechia amounted to 35.2 billion crowns last year, about ten billion crowns more than the year before. Supported sources include, in addition to renewables, heat from renewable sources and biomethane, for example, although their share is small.

Okamura did not comment on further details of the future coalition's economic program. Representatives of the other parties also declined to comment. They plan to present the future government's policy objectives together on Friday.