Disputes over Czech renewable subsidies near end, ERÚ likely to announce support

The Energy Regulatory Office (ERÚ) will most likely nevertheless announce support for existing renewable energy sources (RES) and high-efficiency combined heat and power (CHP) for next year. This afternoon, it published a working version of its pricing decision, the final version of which will take effect once the approved government regulation is published in the Collection of Laws. Support for sources connected next year will not be announced until it is approved by the European Commission.

The support applies to electricity generated by supported sources (RES, high-efficiency combined heat and power plants, and electricity generation plants using secondary energy sources) and to heat generated from renewable sources commissioned before 2013. These sources faced the prospect of having to do without support in 2016, and potentially in subsequent years as well. The total amount at stake for next year was CZK 42 billion.

“Today, in order to resolve the situation in some way, or at least begin addressing it, we will publish a working version of the pricing decision, which could accommodate the government regulation. We are working on the assumption that the European Commission does indeed regard the support as existing aid, as claimed by the Ministry of Industry and Trade. We do not have that information,” ERÚ spokesman Jiří Chvojka said following a meeting of the regulator’s leadership.

If the situation is resolved by the end of the year, support recipients will receive payments as they have done until now. Otherwise, they will receive support only once the ERÚ pricing decision takes effect.

“I signed it yesterday, the prime minister signed it today, so the question is when it will be published in the Collection of Laws, which will probably be soon.”
Minister of Industry and Trade Jan Mládek

ERÚ did not want to announce the support because it believes that sources commissioned between 2006 and 2012 are not entitled to it, as they have not yet received European Commission approval. The regulator’s actions have been the target of sharp criticism.

“The government regulation is already ready for publication in the official gazette. The pricing decision for renewable sources must be issued urgently before the end of the year, otherwise irreparable damage will occur, affecting not only renewable sources but also banks and agriculture,” added Veronika Hamáčková of the Czech Photovoltaic Industry Association.

Newly connected sources must wait

The working version of ERÚ’s pricing decision does not apply to sources that will be connected from 1 January 2016. The regulator fears that announcing it would exceed its statutory authority. As ERÚ chair Alena Vitásková said in December, support for these sources will not be announced until it is approved by the European Commission. According to Mládek, this should happen between February and April 2016.