Dec 13, 2021

Price of Electricity to Go Up by 30 to 50 Percent This Winter

Prague Morning

The price of electricity will rise by 30 to 50 percent next year, and the price of gas by 50 to 70 percent, said Karel Havlíček (ANO), Minister of Industry and Trade in resignation.

The government in resignation will propose an amendment that will reduce the value-added tax (VAT) rate on electricity and gas from 21 percent to zero for the coming year.

At the same time The government wants to waive the so-called supported energy sources (POZE). If both proposals pass, households’ energy payments will be reduced by about 35 percent.

According to Havlíček, the remission of VAT and the fee for renewable resources are the only comprehensive measures that can be taken.

The Czech Republic spends about 46 billion crowns a year on renewable sources, 20 billion of which are contributed by households and companies. In 2022, the state should pay the full amount of support.

The price for water will increase by six percent year on year to CZK 107.72 per cubic meter next year.

For Prague residents, this means that their monthly water price will increase by about 21 CZK per person, (252 CZK per person per year).

According to the document, the more significant price increase will be reflected in the sewage fee, which will rise by 10.7 percent to 51.84 CZK per cubic meter. In the case of water charges, the price will be two percent higher, and residents will pay 55.88 CZK per cubic meter.