Czech govt. earmarks CZK 177 billion to help households cut costs

The govt. has announced that it will offer households relief on energy bills in the amount of 15,000 CZK; support could begin this year.


Written by ČTK Published on 25.08.2022 15:30:00 (updated on 25.08.2022) Reading time: 2 minutes

The Czech government has earmarked CZK 177 billion in total aid to help households facing skyrocketing electricity and gas prices, Prime Minister Petr Fiala announced after the government approved its "austerity energy tariff" in a Wednesday meeting.

The savings tariff is intended for households. The total amount of aid combines a contribution through a cost-saving tariff and a waiver of the fee for renewable energy sources, which amounts to CZK 599 for each megawatt hour of electricity. The waiver of the fee for renewable resources applies not only to households but also to companies and organizations.

The average support will work out to roughly CZK 15,000, CZK 4,000 of which will be reflected on energy bills already from autumn.

"We are releasing 177 billion crowns to help citizens," Fiala tweeted Wednesday. "The economic tariff means that each household will receive an average of CZK 15,000. There is a one-off child allowance of CZK 5,000 and a modified housing allowance, which can be drawn by a large number of households. We will not let anyone down."

The government said it will launch an online calculator allowing people to calculate the approximate amount of state support for energy payments. Though no details were given as to when the calculator would be launched, it will likely be found on the website of the Ministry of Industry.

In mid-September, according to Fiala, the government is planning to launch an information campaign that will advise people where they can seek help.

The Fiala administration summarized its relief efforts as also including the triple valorization of pensions, a reduction in excise duty on diesel and gasoline, the abolition of road tax, increased salaries in the public sector, and an increase in social benefits, increased social services, forgiveness payments for renewable energy sources, cost-saving tariff, compensation and support of heating plants from domestic boilers and compensation of indirect costs to companies.

In response to the planned measures, the opposition said the only solution to the current energy crisis is to introduce price caps. Former industry and trade minister Karel Havlíček said at a Thursday press conference that Fiala's government is failing to help firms, state institutions, regions, and municipalities.

The opposition called for the diversification of energy prices as well as energy price caps at the EU level and the trading of emission allowances. Havlíček also mentioned purchasing the stock of minority shareholders in the ČEZ state-controlled utility holding.

He said the cabinet has taken "a brutal step" by dividing the aid into two parts, adding that the support to be paid this year is insufficient.

Energy prices in the country are currently at a record high. Speaking to reporters Wednesday, Fiala cited an analysis that places Czechia fourth among the EU countries in its level of support relative to the country's GDP.

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