The energy allowance in the upcoming energy-saving tariff, which is intended to help households reduce their electricity and natural gas bills, will be set at a maximum of CZK 20,000 per household. Photo credit: Freepik

Czech Republic, July 12 (BD) – The exact form and details of the subsidy will be decided by the government, according to the draft amendment to the Energy Act which has been submitted to parliament. An extraordinary session of parliament has been called for Thursday 14 July, when MPs are set to approve the draft in a state of legislative emergency.

As part of the new energy-saving tariff, the allowance for energy use is intended to help households reduce their electricity and natural gas bills, and will be set at a maximum of CZK 20,000 per point of consumption. The allowance will be a subsidy from the state budget in favour of gas and electricity providers, who will then reduce the bills or advance payments of household customers based on this subsidy. 

“The aim of the proposed legislation is to reduce the price of electricity and natural gas to final customers in emergency market situations,” the government writes in its explanatory memorandum. According to the government, Czech households are currently experiencing such an emergency situation, defined as a situation in which a significant number of citizens are in financial difficulties due to high energy prices, and this situation cannot be solved by social benefits.

Who exactly will be entitled to the allowance will be determined by the government by decree, and will depend on the distribution rate, gas consumption and possibly other conditions. The allowance is intended to pay for the gas or electricity delivered by energy companies to the customer’s household. The government will also define by regulation the amount of the contribution to be paid to energy providers from the state budget. However, according to the government, the final beneficiary of the contribution will be the customer. The contribution should not be subject to taxation and will be exempt from income taxes. 

The government will set aside CZK 66 billion to help companies and households for the coming heating season. In addition to the energy-saving tariff, it wants to waive the fee for companies and households to support renewable energy sources.

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