Prague, Sept. 13, (dpa/GNA) - The Czech government is pressing ahead with plans to introduce an electricity and gas price cap for households and small businesses.
Prime Minister Petr Fiala’s Cabinet agreed on a draft law at a special meeting on Monday night, which must now be passed by both chambers of parliament.
If approved, the law would cap the price of electricity for households and small businesses to a maximum of six koruna ($0.25) per kilowatt hour plus network and distribution costs from November 1.
The law would also cap gas prices to around half that amount.
The state will likely take on the difference between the cap and the true price. Finance Minister Zbyněk Stanjura estimated the move would cost the government up to €5.3 billion. As well as small businesses, the price caps are also expected to apply to schools and hospitals.
The Czech Republic is a net exporter of electricity with its nuclear power facilities Temelin and Dukovany. Nevertheless, the country has been hit by rising energy costs for months. Indeed, observers have suggested that the move to impose a price cap is linked to the country’s upcoming local and senate elections.
GNA