New Czech coalition wants to nationalize ČEZ or reject emissions allowances

Nationalizing energy company ČEZ, transferring all charges for renewable energy sources to the state, or opposing emissions allowance systems are among the main energy priorities of the incoming government being formed by the ANO, SPD and Motorists coalition. This follows from a draft government policy statement seen by the Czech News Agency (ČTK). The parties also agreed in the statement to continue supporting the development of nuclear power, while not excluding renewable energy sources.

According to the coalition, the priorities listed have one main goal: achieving lower energy prices and energy self-sufficiency. The draft says it also intends to achieve this through measures that set it apart from the outgoing government of Prime Minister Petr Fiala (ODS).

The most significant difference between the priorities of the new coalition and the outgoing government is the plan to take full control of ČEZ. “We will take steps to gain 100% control over generation within the ČEZ Group. The share buyback will not be funded from the state budget, but carried out by ČEZ itself,” the coalition said in its statement. ANO deputy chairman Karel Havlíček said in recent weeks that the move would take around a year to a year and a half and cost approximately 250 billion crowns. The current cabinet, however, has long criticized the plan. Minister of Industry and Trade Lukáš Vlček (STAN) called it expensive and senseless.

The new coalition also opposed the emissions allowance system in its statement. It wants to initiate a review of the entire system at EU level, describing it as unpredictable. It also declared that it would not introduce the new ETS 2 allowance system, which extends allowances to transport and households. Vlček has said, however, that it is no longer possible to withdraw from the system, or that doing so would incur heavy fines.

Another energy pledge by the new coalition is to transfer all charges for supported energy sources (POZE) to the state. Currently, the contributions are divided between the state and energy consumers. The new coalition took inspiration from abroad; in Germany, for example, the state alone pays these charges. The draft says the aim is to reduce regulated energy prices. If the new government approved the measure, it would increase the state’s currently planned spending on POZE next year from 24.6 billion crowns by a further approximately 20 billion crowns.

On other energy priorities, the new government does not differ as much from the current cabinet. It wants, for example, to continue preparations for new nuclear units at Dukovany, new gas-fired power plants, the introduction of capacity mechanisms, and the modernization of the district heating sector.

The coalition also declared that it wants to create conditions for further development of renewable energy sources. “Their development must, however, be consistent with maintaining the stability of the transmission and distribution grid,” it said in its statement.