Havlíček: Reducing the subsidy to green resources from the budget will not cause an increase in people’s payments

Updates: 08.06.2021 15:23

Prague – Subsidies to so-called supported energy sources from the state budget are to fall by seven billion to 20 billion crowns year-on-year next year. This follows from the documents for the draft state budget for next year, which is available to ČTK. The Energy Regulatory Office (ERO) pointed out that if the state reduced the financing of state budget support or did not find additional resources to cover their possible increase, the difference would have to be paid by consumers, specifically companies and enterprises at high and very high voltage levels. The Minister of Industry and Trade Karel Havlíček (for YES) told ČTK today that the contribution of households and companies will not increase next year.

The total cost of supported energy sources in recent years is over 40 billion crowns every year, the previous year they were paid 45.4 billion crowns. Part covers the state budget, the rest is subsidized by customers. The Ministry of Finance stated that the proposal for 2022 is based on the medium-term outlook approved by the government in autumn 2020. “The amount takes into account the possible impacts and savings of funds spent from the state budget on supported energy sources ( However, the final proposal for the amount of the subsidy will be the subject of further negotiations between the Ministries of Finance and Industry and Trade as part of the preparation of the draft law on the state budget for 2022, “said Zdeněk Vojtěch from the Ministry of Finance.

According to Minister Havlíček, this is a preliminary proposal. “We expect that the POZE law will be adopted, if not, we will adjust it in the summer. It will not affect the ceiling for households and we will not raise it for industry either,” he told ČTK today. The ERO reminded that small consumers contribute in most cases 495 crowns from green megawatt-hours of electricity to green resources, which is also a legal ceiling that cannot be exceeded. “Additional expenditures, if the government did not offer another source of financing, would fall mainly on large customers at high and very high voltage levels,” Michal Kebort, a spokesman for the office, told ČTK today.

A similar situation occurred during the preparation of currently valid price decisions issued by the ERO at the end of last year. At that time, the Office stated that the costs of financing support for supported resources will increase by about two billion crowns this year compared to the plans, which will affect companies and firms. The chairman of the ERO Council, Stanislav Trávníček, stated at the time that the office was not negotiating the amount of the subsidy from the state budget. However, he admitted that, according to his information, the subsidy from the state budget for 2021 should have been lower, in the amount of around 24 billion crowns. “We actively dealt with the situation with the ERO and the Ministry of Finance, we managed to defend 27 billion crowns, originally it was less,” Havlíček also confirmed at that time.

The Chamber of Deputies sent the government’s draft amendment to the POZE Act to the third reading last week. The draft amendment was approved by the government at the end of last April. At that time, her passion was aroused by her different approach to the permitted profitability of individual renewable energy sources. According to her, the internal rate of return (IRR), simply the return on investment in a renewable source during the duration of the aid, was 6.3 percent for solar sources. It should have been higher for other renewables. When and in what form the amendment will come into force, but it is not yet clear.

Havlíček has repeatedly reiterated in recent days that the Ministry of Industry does not adhere to the low permitted profitability of solar power plants in the proposed amendment to the law and plans to set a range for the permitted yield between 8.4 and 10.6 percent for all. Members describedthat if the IRR for solar power plants were 8.4 percent and at the same time the solar tax on projects from the so – called solar boom would increase by ten percent, it would bring four to five billion CZK into the state budget for solar tax. To do so, the state would save one to two billion CZK under the IRR. From 2006 to the end of 2019, over 385 billion crowns were paid out to support POZE in the Czech Republic. The payment of support for solar power plants has long been criticized by President Miloš Zeman.

Source: České noviny – hlavní události by www.ceskenoviny.cz.

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