Government agrees on plan to limit energy price hikes to 5.5%

20-10-2010

The government intends to limit an expected increase in electricity prices by introducing a withholding tax on solar energy plants and selling emissions vouchers. Prime Minister Petr Nečas said Wednesday that the 26% tax should keep the price rises to 5.5% for both households and businesses by bringing the state roughly 4.2 billion crowns next year. The sale of emission vouchers he said would fetch the state coffers 4.8 billion. The government also intends to increase the fees for exempting land for solar panels from the agricultural fund, which would draw another 1.7 billion crowns. The withholding tax would apply only to high-power solar panels, which are reportedly the cause of the price hikes, and not roof panels for households.