Kladno heating plant in Czechia wants to raise prices, or may have to consider ending production

Kladno heating plant wants to raise heat prices and is negotiating with the city to amend a contract signed earlier, which runs until 2030. In recent years, however, emissions allowance prices have risen sharply. Heat production is loss-making for the company. If it fails to reach an agreement with the city, it may stop production in 2026. Kladno residents are not at risk of being left without heat supplies, however; an alternative heat source, such as gas, could be used, Teplárna Kladno director Michal Hons told CTK today. CTK is seeking comment from Kladno city leaders. The plant uses mainly coal as its fuel. It also generates electricity.

„The economic situation is to some extent unsustainable,“ the director said, adding that the aim is to reach an agreement with the city.

According to Hons, the price increase would be phased in over the next two or three years, rising by tens of percent, but for end consumers it should mean an increase of a few percent. Depending on the type of supply, customers in Kladno pay the municipal company Tepo either 674 or 782 korunas per gigajoule. The heating plant charges Tepo 387 korunas per gigajoule, a price set before the energy crisis began that falls far short of covering the plant’s current high costs. The average price of heat in the Czech Republic is now 1100 korunas per gigajoule, according to the director.

„We are looking for an alternative solution for district heating in the city. Our experts are testing new fuels and optimising operating conditions, but none of the options tested so far can be implemented under the terms of the current contract,“ Hons added.

Teplárna Kladno is one of the largest energy producers in the Czech Republic. It employs more than 230 people.