ČEPS will receive a subsidy of CZK 22.7 billion from the state, the rest of the money will be distributed to distributors

ČEPS will receive a subsidy of CZK 22.7 billion from the state, the rest of the money will be distributed to distributors

ČEPS will receive a subsidy of CZK 22.7 billion from the state, additional money ;that will be distributed to distributors

Illustration photo – ČEPS company – emblem, logo

Prague – The operator of the energy transmission system ČEPS should receive a subsidy from the state this year 7 .2 billion crowns for energy losses in the network and another 15.5 billion crowns to ensure system services. The state wants to prevent further increases in the price of electricity for consumers. Marek Vošahlík, spokesman for the Ministry of Industry and Trade, told ČTK today. Another approximately 15 billion crowns will be distributed by the state to the energy losses in the system among the distributors, the Ekonomický deník pointed out today. On Wednesday, the government will discuss the provision of subsidies.

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According to the Ministry, the increase in wholesale electricity prices, which increased several times last year, increases the costs of the transmission system operator, especially in the case of electricity purchases for losses in the transmission system. “Thus, not only customers are affected by high electricity prices, but also distribution and transmission system operators, who buy electricity to cover losses in the electricity system,” Vošahlík explained the need for subsidies.

Therefore, in an effort to prevent this price increase from being fully reflected in the regulated price for electricity transmission for this year and thus burdening the end customer, the Ministry proposed a subsidy for ČEPS and distributors. ČEPS should thus receive 7.2 billion crowns from the state to cover the costs of electricity losses. In addition, the state will provide the state company with a subsidy of 15.5 billion crowns for the provision of system services for this year, Vošahlík noted. The company will thus gain a total of 22.7 billion crowns.

According to the Ekonomický deník, the state is going to distribute the other money among the distributors. About 12.2 billion crowns should be used to cover the loss of electricity in the regional distribution systems operated by ČEZ Distribuce, EG.D and PREdistribuce. Approximately 1.1 billion crowns are to be used to compensate for electricity losses in local distribution systems and 2.1 billion crowns to compensate for losses in gas systems. The Energy Regulatory Office (ERÚ) when determining regulated prices associated with covering losses in the transmission system and providing system services at the prices of regulated prices for the next year. Without reimbursement of the increased costs caused by the jump in prices by the state, consumers would have to pay the difference in the coming years.

ČEPS operates in the Czech Republic as the exclusive operator of the transmission system based on a license from the Energy Regulatory Office. It maintains, restores and operates 44 substations with 78 transformers and lines with a total length of over 5,600 kilometers. One hundred percent of the company's shares are owned by the state through the Ministry of Industry and Trade.