The government has approved a long-awaited savings tariff, which, along with eliminating fees for renewable sources, would exempt households from energy payments. “This is certainly the fastest and most effective way from the state’s point of view. However, this is not the most effective way to help those in need, “assures the economist and adviser to Prime Minister Daniel Monish.
Daniel Monish, Member of the Government’s National Economic Council (Nerf) | Photo: Rene Volvik | Source: iROZHLAS.cz
Energy will become cheaper across the board for everyone, including those whose higher price could lead to lower consumption.
Daniel Monish, Adviser to the Prime Minister and member of the Government’s National Economic Council
“For some people, the increase in energy prices is not fatal. They are simply treating themselves to a warm pool because the state paid for it.”
Munich sees another problem in the fact that it is a one-time procedure and no one knows what will follow. At the same time, the return of energy prices to the level of last year cannot be expected.
“60 billion crowns is really a lot of money. Child benefits, which really help the poor, are one-twentieth. If we were to bring it to the level of 2008, it would cost us one-sixty of what this discounted tariff would cost. A few years ago it would have been a huge topic. Today, no one even thinks about it.”
The opposition and conservatives are calling on the government to move forward in setting a ceiling on energy prices. But Münich points out that any pricing intervention would have to be very cautious and no one has thought about it enough at the moment.
“Not always, but mostly the market has a positive benefit. That is why we have a market economy and not a centrally controlled economy.”
Targeted assistance
According to Munich, the state should primarily help the most vulnerable, such as single parents with children and people with limited earning capacity, whether they are disabled, disadvantaged or retired people living independently.
At the same time, the state knows well who these people are, through the Czech Social Security Administration, labor offices and financial authorities.
“The only problem is that they can’t link the data from these three databases to each other. It’s shocking, but not anymore for me, because there are a lot of examples when Czechs are unable to use the data they painstakingly collect,” notes a member Government National Economic Council.
It would be easier to use existing tax and social support tools, he said, because officials and beneficiaries are familiar with them and know what to document. However, it is necessary to adjust its parameters so that those in need receive more money – this also applies to the savings tariff.
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“The way is by linking the state administration data to create a database for those in an energy desperate situation, and the electricity provider can verify that the family in question is poor and offer them a cheaper tariff. At the 6-month horizon, the state can prove it by moving the skeleton, and if The crisis continues, more money will be left for the really poor,” adds the economist from the academic workplace CERGE-EI.
According to him, the government is taking the situation seriously and is determined to resolve the situation. “I have ridden the horse of a state apparatus that is not fully functioning and is not always listening. The question is whether it is suddenly too much for the government. I think the state is inconsistent and it is not the fault of this government. We are trying to blame incompetent individuals and politicians, but the essence lies in another place “.
How does the government communicate with citizens? Listen to the full interview on Interview Plus.
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