Czech state wants to take 90% of electricity producers’ excess profits

In the event of high energy prices, the state could collect up to 90 percent of electricity producers’ excess revenues above a set price cap. The government would set the cap in advance when activating the levy. This is set out in a draft amendment to the Energy Act approved by the government, which is now available in the electronic library of the legislative process (eKLEP). Czech Television also reported on the proposal. A similar mechanism was used by the previous cabinet of Prime Minister Petr Fiala (ODS) during the energy crisis in 2023, but that was a temporary measure.

In the draft, the government is establishing permanent mechanisms to address an energy crisis and any further sharp price rises. In such cases, the amendment would allow the cabinet to regulate electricity prices for consumers and cap electricity producers’ excess revenues. The government could then use part of these revenues to cover the state’s costs of addressing the energy crisis. The amendment will now be submitted to the Chamber of Deputies.