The Czech government has announced state aid so that citizens’ costs for their homes, including electricity, water and heating, do not exceed 30 percent of their income. Prime Minister Petr Fiala has announced this. Energy costs are one of the biggest drivers of inflation in the Czech Republic.
“People spend up to 30 percent of their income on housing, including payments for water and energy,” Fiala told a news conference. The government intends to cover all housing costs above this percentage with a housing contribution. The Czech Prime Minister did not give any figures on the expected amount of this aid.
Special tax for energy companies possible
In order to cover the extra costs of social spending, the Czech government is considering introducing a special tax for energy companies and banks. That could generate several billion euros next year.
The currency depreciation in the Czech Republic rose to 17.5 percent in July compared to the previous year. It hasn’t been this high in nearly three decades. Czech households are starting to feel the effects of rising gas and electricity prices as fixed-term contracts gradually expire.
Heavily dependent on Russia
The country was previously nearly 100 percent dependent on Russian gas. The government has now ensured that approximately one third of the demand is covered by an LNG terminal in the Netherlands.
In addition, the gas storage facilities in the country are more than 80 percent full. However, if the Russian gas goes out completely, there will still be holes. The government stated that austerity measures and European solidarity should enable the country to get through the winter season.
In extreme cases, only heat to 18 degrees
The cabinet plans savings for the extreme scenario of no gas flow at all: on the one hand, less can be supplied to industry, on the other hand, the heating temperature in public buildings and apartments can be reduced to 18 degrees. This is apparent from a decree recently submitted by the Czech Ministry of Industry and Trade.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
