Stanjura: Czech Finance Ministry seeks to reduce renewable energy support

The Ministry of Finance is looking for ways to reduce the total amount of payments supporting renewable energy sources. One option could be a change to the law that would limit subsidies. Finance Minister Zbyněk Stanjura (ODS) said this on Czech Television’s Otázky Václava Moravce programme. This year, payments for supported energy sources (POZE) are being covered entirely by the state. According to the minister, the system used in previous years, when payments were divided between the state and consumers, should return next year. However, he said it is not yet clear what system will be used.

Since 2006, more than 500 billion crowns have been paid out in Czechia to support energy sources (POZE). Until last year, the subsidy was partly funded by the state, with consumers paying the rest through their electricity bills. Because of high energy prices, the state took over these payments in full for this year. This year’s exception will most likely end next year.

According to Stanjura, the current situation, in which the state covers all support for POZE, is unsustainable. He will therefore push for the contribution to be divided once again between the state, households and businesses next year. The minister said the government will now debate whether the shares paid by the state and consumers should be the same as before the energy crisis.

„My view is that it should be divided that way. But we will try to reduce the total amount,“ Stanjura said.

He said his ministry is now looking for arguments that would make it possible to reduce the volume of payments. He acknowledged that changing the law could be one option. However, he was unable to say when he might submit a proposal. According to the minister, all potential legal risks must first be addressed so that the state does not face possible arbitration proceedings in the future from companies that currently receive these subsidies.

The government-set energy price cap is also due to end next year. In recent days, Stanjura has said he does not expect the measure to be extended, given the development of energy prices on the markets.