Czech state can step in against high electricity prices: Government approves new energy amendment

The government today approved an amendment to the Energy Act that would allow it to regulate electricity prices for customers and cap excessive revenues earned by electricity producers if energy prices surge again. The government could then use a levy on part of these revenues to cover the state’s costs of addressing the energy crisis. Industry and Trade Minister Karel Havlíček (ANO) said this at a press conference after the cabinet meeting. The amendment would not automatically introduce regulation; according to Havlíček, it is intended to allow the government to respond quickly to future market developments.

Energy prices have been rising since this spring as a result of the conflict in the Middle East. Gas and electricity prices have increased by tens of percent since March. Domestic suppliers are gradually passing on the increases in their price lists.