Energy Costs Set to Rise as Distribution Investments Shift to Consumers
PRAGUE, CZECH REPUBLIC – Consumers will likely bear teh cost of substantial upcoming investments in energy distribution infrastructure, according to Martin seycek, an equity investment specialist at J&T Investment Company. The financial burden stems from the european Union’s emissions trading system and its aim to discourage reliance on fossil fuels.
Seycek explains that the EU creates emission allowances to incentivize businesses and consumers to move away from practices like coal and gas heating, and gasoline/diesel vehicles. If the price of these allowances – and consequently, energy - isn’t high enough, the EU’s goals will be undermined. The method of trading these allowances introduces price volatility, potentially leading to increases faster than the EU desires.
Currently, the system operates on trading, without a fixed supply ceiling. Seycek notes the EU faces a balancing act: maintaining allowance prices high enough to drive change, but not so high as to negatively impact household living standards. increasing the supply of allowances could lower prices, but the current framework prioritizes market-driven trading.
Seycek previously served as a portfolio manager for energy analyst Michal Šnobr for five years and held managerial positions at O2 Czech Republic and Lidl. He joined J&T Investment Company in February 2025, following studies in International Business at the University of Economics in Prague and at the McCombs School of Business in Austin, Texas.
