The anticipated rise in the regulated segment of electricity prices for the upcoming year in the Czech Republic is likely to be reduced from the initially projected 71% to 68%. This development comes as the Energy Regulatory Office (ERÚ) has identified potential savings amounting to three billion crowns, contributing to a three-percentage-point reduction in the growth of the regulated portion of the price.

Industry and Trade Minister Jozef Síkela reported that the ERÚ’s assessment identified cost-saving opportunities for the state enterprise ČEPS, which manages the transmission system for electricity in the country. The potential reduction in costs for purchasing electricity to maintain balance in the system is expected to positively impact the final pricing decisions.

The ERÚ is scheduled to publish the definitive pricing decisions, outlining the specific impacts on various consumer types, on Thursday, November 30, according to Michal Kebort, a spokesperson for the regulatory office.

Electricity prices consist of both a commercial component, determined by suppliers, and a regulated segment administered by the state. The regulated portion typically constitutes about 40% of the total electricity price.

The initially proposed increase in the regulated portion had faced criticism from companies and parliamentary opposition. Prime Minister Petr Fiala, however, consistently asserted that the overall end prices for energy in the coming year would only experience a single-digit percentage increase compared to the current year.

Finance Minister Zbyněk Stanjura further noted that, for energy-intensive businesses, the overall electricity price for the next year could potentially decrease despite the increase in the regulated part, offering a favorable outlook for certain sectors.

Article by Prague Forum