Czech Republic calls for greater protection of European gas market, fears new fees

The Czech Republic, together with several other Central and Eastern European EU countries, has called for better protection of the gas market. These countries say there is a risk of new fees being introduced for transporting gas through individual countries, as well as of trade barriers emerging. The aim of the appeal is to prevent these fees and restrictions. Otherwise, they will lead to higher energy prices for consumers. The Ministry of Industry and Trade (MPO) reported this yesterday. Poland, Slovakia, Austria and Hungary also joined the appeal.

“Europe has come a very long way. It has managed to stand up to Russia’s weaponisation of energy and free itself from dependence on gas supplies from Russia. This has required great effort, major investment and an admirable change in our approach to gas consumption. We should therefore avoid steps that would undermine this work, damage our unity and strengthen the Russian aggressor,” Industry and Trade Minister Jozef Síkela (STAN) said yesterday.

According to him, introducing fees for gas transportation could fragment and undermine the unity of the market, particularly because of the expected emergence of restrictions on the free trade of gas between EU countries. According to the ministry, this would create unequal conditions for the economies of individual countries, increase household energy costs and restrict cross-border cooperation. Another consequence, the ministry says, would be the risk of undermining efforts to diversify gas sources, as the fees would favour gas supplies from Russia.

The share of Russian gas in imports to the Czech Republic has risen sharply in recent months. It stood at about 62 percent this January, having been close to zero for most of last year. This is according to data from the Czech Statistical Office (ČSÚ), cited in early February by Jiří Pour, an economist at UniCredit Bank. He said the Czech Republic paid more than three billion crowns for Russian gas in January. The share of gas from Russia began to rise last autumn. In early February, the MPO said the increase in Russian imports was a consequence of current market developments, but that the Czech Republic remained independent of Russian gas.

In connection with the current appeal, the ministry drew attention to Germany’s gas export fee, which is intended to cover the costs of storing gas in storage facilities. The fee currently stands at 1.86 euros (more than 47.15 Kč) per megawatt-hour for all gas exported from Germany. According to the ministry, Italy and other countries are also considering introducing a similar fee.

All five countries, which the MPO says are backed by several others, have urged the current Belgian presidency to add this issue to the agenda of the energy ministers’ meeting on Monday, 4 March.

Since Russia’s invasion of Ukraine began, European countries, particularly in Central and Eastern Europe, have significantly reduced gas supplies from Russia. They have replaced them mainly with gas from Norway and LNG from the US. Gas is therefore transported to the Czech Republic through several countries, including Germany.