Compensation for Czech companies hit by power outage not on the table, Vlček says

Compensation for companies that suffered losses due to Friday’s power outage is not on the table. Industry and Trade Minister Lukáš Vlček (STAN) told journalists this today after a cabinet meeting. The hospitality sector in particular called for compensation, citing losses of tens of millions of crowns. Vlček also again ruled out increased renewable energy production in neighbouring countries as the cause of the outage.

The Chamber of Commerce of the Czech Republic, the Association of Small and Medium-Sized Enterprises and Craftsmen of the Czech Republic, and the Confederation of Commerce and Tourism of the Czech Republic called on the government to assess the damage caused by the power outage and propose a way to compensate affected businesses. They said the hospitality sector needs help.

Vlček had previously said that any discussion of possible compensation should wait until the causes of the blackout had been investigated. Today he stressed that, at this point, compensation is not on the government’s agenda.

The minister also ruled out the possibility that the power outage was caused by the transit of output from foreign renewable energy sources through the Czech transmission system. “Based on the available data, we can rule out increased flows from Germany due to higher renewable energy generation as the cause. In terms of flows through the Czech Republic, that day was predictable,” Vlček said.

According to transmission system operator ČEPS, the power outage was caused by a conductor breaking on a backbone line. Around one million customers were left without electricity shortly after noon on Friday; supplies to all affected areas had been restored by the evening. Vlček said the incident would still be investigated.

The minister also rejected the suggestion that the outage was caused by insufficient investment in the transmission system. “ČEPS’s investment activity is higher than in previous years,” he said. Spending on upgrading the transmission system is, according to him, 50 percent higher than under the previous government.