Matt Atlas

Residents to get up to CZK 16,000 for Electricity, Gas, and Heating

Czech Parliament

The lower house of the Czech Parliament has approved the bill on the so-called “economical tariff.”

This is a program to assist homeowners with paying their electricity and gas bills for the next heating season. All of the MPs who were present voted in favor.

The program envisions the state compensating all residential consumers for energy bills up to CZK 16,000 each. Originally, the law just assisted with power and gas, but deputies added heating to it.

A separate decree will be issued by the government to determine the exact amount of compensation for specific cases. This is scheduled to happen in early August.

Automatic compensation in the form of a discount will be provided. Residents will not need to file an application or inquire about it in any other way; the energy companies will conduct the recalculation independently.

Compensation will not be available for temporary dwellings (such as cottages) or rates that include recharging facilities for electric vehicles.

“From October 1, people will see the outcomes in their invoices.” “The assistance will be valid for the entire heating season,” said Industry and Trade Minister Jozef Sikela.

The Czech government has set aside CZK 27 billion for this endeavor. It must now be passed by the Senate before it can become law.

According to official data released on Wednesday, Czech inflation reached 17.2 percent year on year in June, up from 16 percent the previous month. The greatest significant increase in food prices occurred.

Inflation in the country has climbed for the 12th month in a row.

Pavel Peterka, the chief economist at Roklen, told that he expects Czech inflation to hit 20% in July and August.