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Czech Republic: Gov’t to cap the energy price for large companies

12 December 2022

The Czech government is prepared to introduce by the end of the year a ceiling for the price of energy for big companies, as it extends its help to companies affected by electricity and gas increases, Prime Minister Petr Fiala said on Thursday, Reuters reports.

The aid could be similar to the measures already introduced for households and smaller companies, the Czech official said. He added that EU decisions have eliminated obstacles in providing aid for larger companies.

“Today it is possible to introduce a capping of the price for the big companies that was not possible before,” Fiala told CNN.

The capping of the price for households, public institutions and smaller companies has already been established at six Czech crowns ($0.26) per kWh of electricity and three Czech crowns for gas, for next year, according to Agerpres.

The Czech publication E15 announced on Thursday that the price ceiling for the big companies could apply to 80% of their energy consumption.

Last month, the Czech government approved the ceiling of the income of companies that produce electricity, in order to fund the measures intended to reduce the burden of high prices on households and companies.

The ceiling on the revenues of the electricity producers will add to the tax on the exceptional revenues imposed to the energy companies and the largest banks, so that next year will be collected to the budget at least 100 billion crowns (4.12 billion dollars). The amounts will finance the compensation programs for electricity users affected by price increases, after the Russian invasion of Ukraine.

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