Kladno heating plant calls on Czech regulator to select new heat supplier from April

Kladno Heating Plant today called on the Energy Regulatory Office (ERÚ) to select a new heat supplier for the city from April. It may, but does not have to, use the heating plant’s technology. However, after 31 March the plant can no longer continue producing and supplying heat due to economic unsustainability, Sev.en Česká energie spokesperson Eva Maříková told ČTK today. Kladno Heating Plant belongs to Pavel Tykač’s Sev.en group and produces heat from coal. Under the law, however, heat supplies should not be interrupted without a replacement. Heat supplies are not at risk, Kladno Mayor Milan Volf (Choice for Kladno) reiterated today.

ERÚ will verify whether the situation at Kladno Heating Plant meets the legal grounds for introducing measures, including selecting a supplier. It is dealing with the situation intensively, ERÚ spokesperson Michal Kebort said in response to a ČTK query.

Last November, the heating plant announced that it would cease operations in December 2026, or by March 2027 at the latest. “The price at which we have been supplying heat over the long term does not cover production costs, so we lose tens of millions of crowns annually on heat production,” said Kladno Heating Plant director Michal Hons. According to him, the reasons are expensive emission allowances, the structure of the European energy market, and a contract with the city heat distributor Tepo concluded before the energy crisis, which is to remain in force until 2030. Kladno is preparing to build its own combined-cycle gas-fired plant, which according to earlier information is due to be completed in 2027.

According to the ERÚ spokesperson, Kladno Heating Plant’s announcement alone does not constitute grounds under the Energy Act for the ERÚ to impose measures beyond the scope of its licence. “The legal grounds can only be objective facts, which the office must now verify. We are of course dealing with the situation intensively, and we will announce further steps after discussing the options with all affected parties,” Kebort explained.

According to Volf, Kladno’s leadership was willing to seek a compromise solution with the heating plant, but no agreement was reached. “On the contrary, the entire situation confirms the correctness of our earlier strategic decision to prepare the construction of our own heat source, which will ensure long-term energy security and stability for the city of Kladno,” the mayor said.

According to Hons, the heating plant’s management presented a possible solution involving the plant’s conversion from coal to gas-fired cogeneration units supplemented by backup gas boilers, but Tepo did not accept the proposal, including its price. Volf said today that the heating plant’s statement contains claims that can easily be disproved. “At this point, I therefore do not consider it meaningful to comment on them in greater detail,” the mayor added.

The heating plant also generates electricity from coal. In this case too, it is due to cease operations in December 2026, or by March 2027 at the latest. In January this year, transmission system operator ČEPS concluded that the closure of Kladno Heating Plant would not endanger grid operations.