Fiala: Deal struck with power firms on compensation for price cap

The Czech government has reached a deal with the country’s biggest energy companies on a compensation system for a cap on electricity and gas prices, the prime minister, Petr Fiala, said on Wednesday. The cabinet will approve the agreed compensation mechanism at the start of next month, he said.

The government has set price caps for next year at CZK 6,000 for one megawatt hour of electricity, including VAT, and CZK 3,000 for one megawatt of gas.

According to earlier government declarations a maximum of CZK 170 billion is being earmarked to cover government power price caps for households, firms and public institutions.