Lift energy price caps by year-end, European Commission advises. Due to state deficit

The European Commission has issued fiscal policy recommendations for all EU member states. With electricity and natural gas prices gradually falling, the recommended measures also include a proposal to abolish price caps by the end of this year at the latest. If necessary, price caps should be reintroduced, but only in a targeted manner for vulnerable customers. In the Czech Republic, however, energy prices are untouchable, and the government avoids any increase in them.

At the end of May, the European Commission issued targeted recommendations for EU member states on fiscal policy. From an energy perspective, the key message is the recommendation that the Czech Republic end its support for high energy prices by the end of this year. Should the support continue beyond that point, it should be targeted only at selected groups of customers. It would therefore focus, for example, only on vulnerable consumers or businesses.

In the Czech Republic, price caps were introduced with effect from 1 January 2023, at a time when the energy crisis was already receding. After more than five months in force, they now mainly concern customers who chose fixed-price contracts for at least one year during the period of high prices and who will be subject to these higher prices, or to the price cap if contractual prices exceed it, until their contracts expire.