On the evening of Thursday, July 14, the lower house of the Czech Parliament approved the bill on the so-called “economical tariff.”

This is a program to help residents pay bills for electricity and gas in the new heating season. All the MPs present voted in favor.

The program envisages that the state will compensate all household consumers with up to CZK 16,000 for energy costs. In an earlier version, the bill only assisted with electricity and gas, but the deputies added to it also heating.

The Government will determine the exact amount of compensation for specific cases by a separate decree. This is expected to take place in early August.

Compensation will be provided automatically in the form of a discount. Residents will not have to file an application or additionally ask about it in another way – the energy companies will independently conduct the recalculation and resolve all issues with the state directly.

However, compensation will not apply to temporary residences (e.g. cottages) and tariffs that include recharging points for electric vehicles.

“People will see the results in their invoices from October 1. The support will be valid for the whole heating season,” stated the Minister of Industry and Trade Jozef Sikela.

The government has allocated CZK 27 billion for this program. For it to be entered into law, it must now be approved by the Senate.

Inflation

Inflation in Czechia reached 17.2 percent year-on-year in June, up from 16 percent the previous month, according to official data published on Wednesday. The price of foodstuffs increased the most.

It is the 12th month in a row that inflation has risen in the country.

The chief economist of Roklen, Pavel Peterka, told Novinky.cz that he expected Czech inflation to attack the 20 percent mark in July and August.