Prague Update: Amendment to the Act on Subsidised Energy Sources approved including the comments of the Senate.

On September 15 the Chamber of deputies has adopted the proposal of the amendment to the Act on Subsidised Energy Sources as commented on by the Senate. The most important change in comparison to the original proposal is the definition of new parameters for granting subsidies to the electricity from renewable sources. The final version of the amendment allows subsidies in case the IRR falls within the scope from 8.4 % to 10.6 %. The original proposal of the government allowed IRR only up to the amount of 6.4 % and such parameters could have been fatal for many producers.

The exact IRR for the respective energy sources will be set up by a regulation of the government. According to recent comments of Minister of Industry and Trade Karel Havlíček, it could be expected that the IRR for solar energy would be set to the lowest possible level of 8.4 %.

A so called additional solar tax is another important change introduced by this amendment. The FVEs from 2009 were not obliged to pay the levy so far, but now they would be obliged to pay the levy from purchase price in the amount of 10 % and in case of the Green Bonus in the amount of 11 %. 

By Konečná & Zacha law firm, Central Europe, a Transatlantic Law International Affiliated Firm.  

For further information or for any assistance please contact centraleurope@transatlanticlaw.com

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