Amendment to the Czech Energy Act clears the Senate

Following the successful consideration of the amendment to the Energy Act in the Chamber of Deputies (which we covered in detail in articles on its consideration by the Economic Committee, second reading, third reading and repeat consideration at the third reading), the bill has also passed through the Senate, completing the legislative process in Parliament. It will now be submitted to the President of the Czech Republic for signature.

The amendment was considered by the Senate on 13 May 2015 as the first item on the agenda, and the Senate decided not to consider it. This is somewhat surprising following its contentious consideration in the Chamber of Deputies. While MPs submitted more than 300 amendments in the Chamber of Deputies, not a single comment was made in the Senate. (a detailed record of the Senate proceedings is available here)

The Chamber of Deputies had previously considered the bill in six of its committees, while in the Senate the amendment was considered only by the Economic Committee and the Constitutional and Legal Affairs Committee. The committees’ consideration of the bill resulted in a final recommendation that the Senate should not consider the amendment. This was approved by a vote of 52 in favour to 6 senators against.

The final stage of the legislative process is the signature of the President of the Czech Republic. However, the most important date for all stakeholders is the Act’s effective date:

The amendment will take effect on 1 January 2016. 

The amendment introduces a number of positive changes, particularly for small renewable energy producers. Once the amendment takes effect, no licence will be required for generation facilities of up to 10 kW if they are used to cover their own consumption. A heavily debated issue was a change to the management structure of the Energy Regulatory Office, which, according to its chair Alena Vitásková, will threaten its independence.

“I am very pleased that this amendment has been successfully passed in Parliament. Few pieces of legislation have undergone such detailed discussion. Everyone who was interested took part in this debate, and the result is an amendment supported by a political majority that will help not only Czech industry,”
said Minister of Industry and Trade Jan Mládek

A significant change for industry is contained in the Act on supported energy sources. Under the new system for financing renewable energy support, the charge will be calculated according to the size of reserved capacity (at the medium-voltage level) or the rated current of the circuit breaker (at the low-voltage level). With proper load optimisation, industry will be able to reduce its renewable energy charges.