Electricity and gas price caps are currently being capped at the national and EU-wide level. The Czech government has already decided on this measure and on Monday will set specific limits across the board for small customers that energy prices will not exceed. In the following overview, you can see how this step will affect domestic household consumption and to what extent the changes will affect supplier price lists.
How do price caps work?
- The price cap, decided by the government on Monday, is the maximum price that can be charged to small electricity and gas customers – mainly homes, entrepreneurs and small businesses. Specifically, 6 crowns per kilowatt hour (kWh) including VAT for electricity and 3 crowns per kWh for gas.
The state-announced price ceilings for these small customers will have to be taken into account by suppliers in the energy advances already made in November.
Minister of Labor and Social Affairs Marian Yulechka (KDU-ČSL) said the country will pay the difference to suppliers who have purchased energy at very high prices in the past few months. According to Jurečka, the government wants to prevent suppliers from suffering losses.
Governments can also impose obligations on producers to provide states with a portion of the energy produced in order to secure supplies for the public sector.
- How will the energy price cap affect Czech household consumption? How will the offer on the domestic market change? And how will the bill as a whole add to the already high debt of the Czech state Does it matter? All of this can be found in the following overview.
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