Fiala: Czechia will not get cheaper energy without expanding renewables and nuclear power

Until the Czech Republic strengthens the role of renewables and nuclear power in its energy mix, it will not get lower electricity prices, Prime Minister Petr Fiala (ODS) said today after a cabinet meeting. He said the government is trying to make up for the shortcomings in this area left by previous governments. He reiterated that the increase in the regulated component of energy prices proposed on Tuesday by the Energy Regulatory Office (ERÚ) would not have a dramatic impact on households.

„It is clear that renewables and nuclear power offer the cheapest energy today. If the Czech Republic did not take the right steps in these areas in the past, it cannot make up for that in a few months,“ Fiala said.

„Until we have a much larger share of renewables in our energy mix and further strengthen nuclear power, we will not get lower prices,“ he added.

The prime minister also reiterated that he did not expect the increase in the regulated component of energy prices to have a dramatic impact. For the vast majority of households, he said, it would mean energy costs rising by a few percent. He noted that the regulated component makes up a smaller share of the electricity price, with most of it determined by the market price of electricity, which is expected to fall according to forecasts.

The prime minister also said that the charge supporting renewable energy sources, which the state paid instead of consumers this year and which will return to the regulated component of the price next year, has remained unchanged for many years. In light of price developments, its significance is therefore declining, Fiala said.

Energy prices consist of a commercial component set by suppliers and a regulated component managed by the state. For households, the regulated component makes up about 40 percent of the final electricity price and around 20 percent of the gas price. For large consumers, the regulated component accounts for a smaller share of the final electricity price.

Under the Energy Regulatory Office’s proposal on Tuesday, the regulated component of the electricity price would rise by 71 percent year on year, resulting in an average increase of about 1408 Kč per megawatt-hour (MWh) including VAT. The regulated component of electricity prices for large consumers would rise even more sharply: by 113 percent year on year at high voltage and by 206 percent at very high voltage. The increase in the regulated component for gas is expected to be somewhat lower.