Czech Republic faces potential energy crisis as wholesale prices rise

Czech Minister of Industry and Trade Karel Havlíček has warned that Europe is entering a new phase of the energy crisis. He noted that while current consumer prices are buffered by long-term contracts, rising wholesale costs for gas and electricity on the exchanges will likely impact customers within a few months.

Rising energy costs are being driven by escalations in the wars in Ukraine and the Middle East. Wholesale natural gas prices on the European market have recently reached levels not seen since late 2022. To mitigate these impacts, Havlíček stated that the Czech Republic will seek allies within the EU to implement stabilizing measures.

Proposed actions include limiting the impact of emission allowances. Specifically, the Czech government aims to advocate for the postponement of the ETS 2 system, scheduled for 2028, which would extend emissions trading to road transport and building heating. There are also calls to limit the existing ETS 1 system for certain industrial sectors.