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Electricity will become significantly more expensive for Czechs in the autumn

Last month, the European Commission presented a set of new measures to make the EU economy greener. Among them, the proposal will also burden buildings and maritime transport with allowances. If this proposal is put into practice, housing or sea transport will become more expensive, ie also the goods that are transported through it, from food, through clothing, toys to, for example, electronics. Until now, allowances have had to be bought mainly by power plants, heating plants and industrial companies. The extension of the range in which allowances are required will, of course, increase the demand for them, which supports the described price growth.

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It is also as a result of dramatically more expensive allowances that the price of power electricity, ie electricity sold wholesale, is rising rapidly. Its price depends on how much ordinary households pay for electricity. In addition to rising emission allowances, the price of electricity for Czech households is also driven up by the progressive closure of German coal and nuclear power plants. Three more coal-fired power plants are being shut down in Germany this year. Three of the remaining six nuclear reactors will also stop generating electricity this year.

The rise in the price of electricity in Germany is reflected in the growth of its price in the Czech Republic, as the Czech Republic is de facto part of the German energy system. So the prices of power electricity in the Czech Republic actually “copy” the German ones. The Czechs thus bear the cost of German clean energy, although they themselves do not invest much in cleaning their electricity.

While in the first quarter of this year the usual price of electricity was around 1,500 to 1,600 crowns per megawatt-hour, in the new price lists from June this year, the price of over 2,000 crowns is no exception. At the same time, electricity prices are still rising during the holidays. However, the main wave of price increases will be felt by Czech households in October or November.

Emission prices will continue to rise, as will German power plants. Households in the Czech Republic will certainly not be fooled when they fix the price of electricity for as long as possible, ie for three years. The only problem is that almost all major players have already made fixed products more expensive.

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