Czech Republic limits energy prices
2022.12.14 13:40
Czech Republic limits energy prices
Budrigannews.com – According to Industry Minister Jozef Sikela, the Czech government approved a measure on Wednesday that set electricity prices for large businesses at the same level as those for households and small businesses.
He stated that the price, which will apply to 80% of past consumption to encourage savings, will be set at 5 crowns ($0.2192) per kilowatt hour of electricity and 2.5 crowns per kilowatt hour of natural gas, excluding value-added tax.
The Czech economy is profoundly subject to assembling and products, which fundamentally go to adjoining Germany and other European Association states. Companies have demanded a price cap in order to avoid losing out to foreign competitors who benefit from government programs like those in Germany.
Sikela stated that the aid, which will begin in 2023, was compliant with European competition regulations; however, the plan itself still required notification to the European Commission.
According to Finance Minister Zbynek Stanjura, the aid was limited to 4 million euros per company, which is the maximum amount permitted by the EU.
More Note to investor
Stanjura stated, “It is positive that all entrepreneurs will have the same conditions, and it gives us strong hope that businesses will survive a tough 2023 in good health and we will maintain the lowest unemployment rate in the EU.”
He stated that caps on the revenues of electricity producers and windfall taxes on the energy and banking industries that have already been approved will be used to finance the measure.
The government anticipated that the price ceilings for all customers would cost up to 170 billion crowns, according to the news agency CTK.
