Solar power lobby says arbitration cases likely after latest government moves

21-10-2010

Solar power producers in the Czech Republic have reacted angrily to a raft of government moves aimed at curbing electricity prices which have been squarely blamed on an ongoing solar power boom. A representative of the Czech Photovoltaic Association told Czech Radio on Thursday that he expected some operators would launch arbitration procedures against the state. He said operators faced a 30 percent cut in earnings following the latest moves and pointed out that some investors had taken out loans on the basis of a business plan which the government has now torn up. The government announced measures on Wednesday aimed at capping electricity price rises next year below 5.5 percent. These include a surcharge on agricultural land used for solar facilities, a 26 percent tax on solar companies and a tax on carbon dioxide allowances given out by the government.