Industry ministry analysis: New tariffs would raise electricity prices for more than 38% of Czech households

According to an analysis conducted by the Ministry of Industry and Trade (MPO), the new tariff structure proposed by the Energy Regulatory Office (ERÚ) would raise electricity prices for more than 38% of households. The MPO intends to submit the analysis to the government on Monday. Prime Minister Bohuslav Sobotka said the proposal was bad and added that there was no need for the change to be introduced as early as 2017.

Prime Minister Bohuslav Sobotka met with Minister of Industry and Trade Jan Mládek and Minister of Labour and Social Affairs Michaela Marksová over the proposed tariff structure, asking both to inform the government about the problems with the proposal as soon as possible. According to Mládek, the MPO's analysis of the proposed new tariffs will probably be submitted to the government on Monday.

“The new system of electricity payment tariffs proposed by the Energy Regulatory Office for next year would mean higher electricity prices for more than 38% of households, while 91% of businesses with low electricity consumption would also pay higher prices,” Prime Minister Bohuslav Sobotka relayed the MPO analysis.

According to Sobotka, one of the problems with the proposal is also that it reduces consumers' incentive to save energy.

“In my view, the proposal is bad, as the analysis shows. It is important to rework it and to take a comprehensive approach,” Sobotka added.

According to the prime minister, there is no need for the tariff change, in whatever form, to be introduced as early as 2017. He also added that it is not within the government's remit to instruct the ERÚ on what form the tariff structure should take, but that it has a duty to point out any negative impacts.

ERÚ defends itself, saying the proposal is based on the state energy strategy

“The new tariffs were calculated on the basis of the updated state energy strategy approved by the government and the national action plan for smart grids. So this is not something we made up,” said ERÚ spokesperson Jiří Chvojka.

The main change in the proposed tariff structure, which is intended to be adopted from 2017, is an increase in the share of the fixed charge, i.e. the charge for the size of the reserved capacity – the circuit breaker rating, in the total electricity bill.

More on the changes introduced by the new tariff structure here.

Featured photo: david pacey