Czech Government Ready to Cap Electricity Prices if They Keep Rising

The Czech government is prepared to introduce a cap on electricity prices should they continue to climb. That's according to Deputy Prime Minister and Minister of Industry and Trade Karel Havlíček, speaking amid a sharp rise in energy prices across Europe driven by the escalating situation in the Middle East.

He said the cabinet is closely monitoring developments on the energy market. "If electricity prices keep escalating, we're ready to cap them for producers and traders," Havlíček said, though he did not specify at what price level such a measure might be triggered. In his view, the move would have no impact on the state budget.

Gas Prices Hit Record Highs

The wholesale price of natural gas on the European market topped €80 per megawatt-hour at the end of the week — the highest level since 2022. Electricity prices are climbing along with gas.

According to the minister, the government also has measures prepared in case fuel prices spike sharply. However, the cabinet plans to base any decision to implement them on how the situation unfolds in neighboring countries. Havlíček stressed that if conditions continue to deteriorate, the government will take appropriate action.

Coordination with Visegrád Group Partners

Czechia intends to coordinate its response with its partners in the V4 group. "We've agreed to share information on how the situation develops further. If one country introduces regulation, we'll do the same," the minister added.

Prime Minister Andrej Babiš said that alongside expensive oil, inflated margins at oil refineries are also driving up fuel prices. According to him, the country lacks sufficient refining capacity.

Source: novinky.cz