NEWSFLASH
11/2016
ENERGY REGULATORY OFFICES ISSUES 2017
PRICING DECISIONS FOR ENERGY
On November 25, 2016 the Energy Regulatory Office (“ERO”) updated its website with the new
pricing decisions for energy stipulating the 2017 regulated prices for (i) related services in the
electricity sector and other regulated prices (CR No. 7/2016) and (ii) services in the electricity
sector to consumers from low voltage networks (CR No. 8/2016).
Both pricing decisions take effect as of January 1, 2017 and neither of them sets the feed-in
tariffs or green bonuses for promoted energy sources.
The component of the price for promotion of electricity from renewable energy sources for
2017 (the “RES Promotion Fee”) as set under CR 7/2016 indicates that the ERO is currently
not counting on financing promotion for sources put into operation on or before December 31,
2012. The RES Promotion Fee set under CR 7/2016 is only enough to cover financing the
promotion for sources put into operation after December 31, 2012, which have the necessary
notification from the European Commission (“Commission”).
According to CR 7/2016, the RES Promotion Fee for 2017 depends on the agreed reserved
capacity for offtake and transfer points connected at VHV and HV levels, while the RES
Promotion Fee is stipulated as CZK 2,640.18/(reserved capacity in)MW/month. For LV
levels the RES Promotion Fee depends on the nominal current value of the main circuit breaker
before the electricity meter, with the RES Promotion Fee stipulated as CZK 0.61/A/month.
The cap on the amount an energy buyer pays on the RES Promotion Fee in one billing period
is also still in effect, set as CZK 495/MWh multiplied by the total volume of electricity taken
from the grid during the billing period.
As the RES Promotion Fee is meant to cover the promotion for sources put into operation on
or before December 31, 2012 as well, it would have to be more than CZK 90.00/reserved
capacity in MW/month for sources connected to VHV and HV networks and more than CZK
20/A/month for sources connected to LV, as indicated in the draft CR 7/2016.
This step on the part of the ERO comes despite the press release from the Ministry of Industry
and Trade (“Ministry”) dated November 24, in which the Ministry announced the successful
conclusion of its negotiations with the Commission in connection with notification for
renewables promotion and that the Ministry received confirmation from the Commission that
payment of renewables promotion in the Czech Republic is in compliance with Czech and EU
legislation and there is nothing preventing the money from being paid or received. Such
information was confirmed also by a press release of the European Commission dated
November 28, 2016.
IČ: 27948994, DIČ: CZ27948994
eingetragen in dem vom Stadtgericht in Prag geführten
Handelsregister, unter Teil C, Einlage Nr. 128700
NEWSFLASH
11/2016
PRICING DECISIONS FOR ENERGY FOR 2017
The ERO’s actions in this matter are somewhat difficult to understand because of its repeated
claims that it would announce the promotion for promoted energy sources immediately after
receiving notification from the Commission. Since the Ministry’s press release indicated that
the decision should be issued on November 28, 2016, we can only speculate why the ERO did
not wait to issue the pricing decision until the Commission’s decision on the promotion is
released.
It is quite possible that the ERO will revisit its pricing decision after the notification from the
Commission is published. In the less likely event that it does not, we would need to assess the
legality of the ERO’s actions, as well as their consequences and any claims that may arise,
including compensation for harm incurred to participants in the energy market and their
investors. The potential claims of financing banks and other similar institutions would be
another, separate issue.
We will be happy to answer any questions you may have.
bpv BRAUN PARTNERS s.r.o.
Palác Myslbek
Ovocný trh 8
CZ-110 00 Prague 1
Tel.: (+420) 224 490 000
Fax: (+420) 224 490 033
www.bpv-bp.com
[email protected]
Our publications are prepared for general guidance
on matters of interest only, and do not constitute
professional advice. They do not and cannot take into
account
any
specific
circumstances,
financial
situation or needs of any reader; our readers should
not act upon the information contained in this
publication
without
obtaining
independent
professional advice first. No representation or
warranty (express or implied) is given as to the
accuracy or
completeness
of
the
information
contained in this publication, and, to the extent
permitted by law, bpv Braun Partners s.r.o., its
members, employees, cooperating attorneys and tax
advisers do not accept or assume any liability,
responsibility or duty of care for any consequences
of the reader, or anyone else acting, or refraining to
act, in reliance on the information contained in this
publication or for any decision based on it.