ANNOUNCEMENT 11 Jun 2014

In June 2014, the government of the Czech Republic announced a change in production support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Official letter from the EC to Czech Republic in English, SA.35177: http://ec.europa.eu/competition/state_aid/cases/251690/251690_1561897_220_2.pdf


Inception date: 01 Jan 2013 | Removal date: 01 Jan 2016
Still in force

Production subsidy

On 11 June 2014, the European Commission allowed Czech authorities for a scheme supporting the production of electricity from renewable energy sources. The scheme is implemented in the form of feed-in tariffs (i.e. mandatory purchase prices) and green bonuses.
 
The beneficiaries of the state aid include all operators of electricity production plants which have a hydropower, wind, solar, biomass, biogas or geothermal source. Also, the measure concerns only renewable electrictity installations put into place since the 1 January 2013. The end of the aid depends on the type of the energy source and lasts up until the end of 2015.
 
The expected budget for 2014 circulates at EUR 91 million. It will be partially financed directly from the state budget, while the rest of the financing is provided through 'a special levy imposed on customers of transmission and distribution of electricity services' (para. 34, letter from the EC to the Czech Republic, Brussels 11.6.2014). It 'is charged on electricity consumers per each MWh of electricity consumed and constitutes a fix price component, irrespective of the actual amount of electricity consumed' (para. 35).
 
As the Commission pointed out, 'granting of aid to the Czech producers of renewable electricity strengthens their position on the relevant market vis-ŕ-vis other electricity producers, including from other countries of the European Economic Area (EEA). As there is cross-border trade of electricity, the measure affects trading and competition conditions on electricity markets across EEA.' (para. 57)
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

AFFECTED SECTORS

 

AFFECTED PRODUCTS