Czechia may raise groundwater extraction fees for the first time in 25 years

The Czech Ministry of the Environment is preparing to raise fees for groundwater extraction charged to large consumers — above all water utilities that supply cities and towns. According to the ministry, the rate hasn't changed since 2001, and the need for reform is being driven by recurring summer droughts.

Ministry spokeswoman Jana Šillerová confirmed that the ministry has "long been considering" raising the groundwater fee so that it matches or exceeds the fee for surface water — a move meant to curb excessive exploitation of underground sources. An analysis is currently being prepared, though no concrete timeline for the change has been set.

Who will be affected by the price hike

The changes will only affect those already covered by the Water Act — that is, consumers extracting more than 6,000 cubic meters of water per year. These are mainly water utilities: they draw large volumes of water, treat it, and supply it to cities and villages. Owners of private wells won't be affected by the reform, but residents connected to public water mains could see their water bills rise.

The idea also has the backing of Agriculture Minister Martin Šebestyán (SPD): according to ministry representative Marek Otava, rising costs in water management are forcing officials to look for new funding sources, including revenue from fees. There is no concrete proposal yet — the outlet Ekonomický deník previously reported on the matter as well.

The gap with surface water fees

Currently, the fee for groundwater stands at 2 crowns per cubic meter for drinking water supply and 3 crowns for other uses. By comparison, extracting surface water costs considerably more and varies depending on the river basin: the most expensive is the Morava basin at 9.09 crowns per cubic meter, followed by the Elbe basin (8.6 crowns) and the Ohře basin (8.29 crowns). Water is cheapest in the Oder (7.71 crowns) and Vltava (5.26 crowns) basins.

Economists: a price hike is inevitable

Petr Vávroš, an economist at the Czech University of Life Sciences in Prague, considers the fee increase justified and even urges raising it "decisively," with future increases tied to inflation. "Demand for groundwater as a substitute for surface water is growing because of the drought. If we start relying more heavily on underground reserves instead of surface water, it will end badly," he warns. He notes that higher fees could affect both water prices and food prices — much will depend on how sharply the ministries decide to raise the charge.

The changes would need to be approved by Andrej Babiš's government, but the final amendment to the Water Act must still be passed by the Chamber of Deputies. A similar attempt was made a decade ago by then-Environment Minister Richard Brabec, now governor of the Ústí nad Labem Region and an advisor to Babiš — he had proposed gradually raising the fee to 6 crowns per cubic meter by 2022. The plan was opposed by trade unions, municipalities, and the coalition Social Democrats, who made it a campaign issue ahead of regional council and Senate elections. At the time, unions argued that a family of five would see costs rise by 1,700 crowns a year; Brabec called those estimates inflated, citing a figure closer to 18 crowns per person annually — but ultimately withdrew the proposal.

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Around Prague, based on reporting by seznamzpravy.cz