The government in the Czech Republic has placed price caps on electricity and gas for households and small consumers, under a bill approved by Prime Minister Petr Fiala's liberal-conservative cabinet on Monday evening.
Both chambers of parliament still have to agree to it. Should they do so, the electricity price for households and small consumers will be limited to a maximum of six crowns per kilowatt hour, the equivalent of approximately 24 cents, from 1 November. Grid and distribution costs are not included.
For natural gas, the price ceiling is about 12 cents.
The difference between the upper limit and the actual price will probably have to be paid by the state.
Finance Minister Zbynek Stanjura estimated the cost of the measure at around €5.3 billion.
Municipal facilities such as schools and hospitals will also benefit from the price ceilings.
