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The Czech Republic Government Adopts a Long-Awaited Amendment Changing Rules for Energy Price Caps Applicable to Large Enterprises

The Czech Republic Government Adopts a Long-Awaited Amendment Changing Rules for Energy Price Caps Applicable to Large Enterprises

Czech Republic
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In accordance with a contemplated change of the existing EU Temporary Crisis Framework rules stipulating for state aid limits applicable to the whole European Economic Area, the amended Czech Government Regulation sets forth Czech national limits applicable to delivery points in the Czech Republic.

The purpose is to simplify for Member States to monitor exceedances of the state aid limits.

The lowest limit was set by the Czech Government at € 2 million. However, in the case of high eligible energy supply costs, it can be several times higher. Importantly, a need for further changes may arise as a result of the pending state aid notification to the European Commission.

Large enterprises with delivery points in the Czech Republic are now required to report to the Czech Ministry of Industry and Trade, on a quarterly basis, the amount of its financial benefit from the applicable energy price caps.

Exceeding the Czech national limits during a quarter is not a breach. However, the company is obliged to pay any excessive benefit back to the Czech Republic state budget. The deadlines vary slightly for each category of benefit.

By Michal Hrabovsky, Counsel and David Nemecek, Associate, Eversheds Sutherland

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