Electricity Costs to Fall as Driving expenses Rise Under New Emissions Permit System
PRAGUE – Czech households face a shifting economic landscape as a new emissions permit system is poised to make electricity cheaper while together increasing the cost of driving, according to energy expert martin Ščák. The changes, stemming from the introduction of allowances for carbon emissions, are expected to disproportionately impact those reliant on fossil fuels for both transportation and heating.
Ščák, who founded the energy group Amper Holding after a career in economics at Charles University and ČSOB, explained that the goal is to direct funds generated from the permit system to those most affected, avoiding aid to wealthier individuals who have already invested in energy efficiency and electric vehicles. He suggested a potential “motorcycle voucher” system – a direct refund for increased travel costs – could be implemented for individuals heavily reliant on cars.
While the Ministry of the Environment estimates the cost of a permit at €45, Ščák cautions that inflation could push the price to €60 or even higher, potentially reaching €100-200. He warned that even at the current exchange rate of €65, the impact will be significant for many, potentially costing households “tens of thousands [Czech crowns] less per year.”
The financial burden will be unevenly distributed, with drivers of diesel or gasoline vehicles and those heating with coal facing the most substantial increases. Ščák noted the Ministry’s study is “optimistic” in its price projections.