The government of Petr Fiala wants to spend only CZK 8.5 billion on supported energy sources next year. Therefore, at the meeting on Wednesday 23 October 2024, it approved four austerity measures proposed by the ministries of finance and industry and trade, which are expected to save the state budget tens of billions of crowns in the coming years. It also approved an extension of the deployment period for members of the Czech Army to help with flood relief and a subsidy programme for the acquisition of replacement accommodation and training facilities to replace those destroyed or damaged by natural disasters.
The government has determined that the supported energy sources will allocate only CZK 8.5 billion from the state budget in 2025, which is CZK 4.35 billion less than what has been allocated for this year. At the same time, it agreed on four austerity measures floated by the ministries of finance and industry and trade that are expected to substantially reduce state spending on subsidised energy sources in the coming years. The fast-track amendment to the Energy Act seeks to enforce the introduction of individual checks on the so-called internal rate of return and to correct its calculation, to redefine the range of the allowed internal rate of return in line with the European Commission's decision and to abolish support on days of so-called negative electricity prices, i.e. on days when there is a surplus of electricity on the market that is difficult to find a use for. The measures will mainly affect photovoltaic plants with a capacity of more than 30 kW that were connected to the grid in 2009 and 2010. For details, see press release of the Ministry of Finance.
The Government also discussed further assistance to municipal and regional governments in dealing with the consequences of the devastating floods in September. At the request of the Olomouc Region Governor Josef Suchánek and a similar request from the Moravian-Silesian Region Crisis Staff, it approved extension of the deployment of up to 1,000 members of the Czech Army to help with the liquidation of the consequences of the September floods from the original end of October by one month to the end of November. The soldiers will primarily assist in the construction of replacement bridges in place of the original bridges damaged or destroyed by the floods.
The cabinet also approved granting a subsidy to the Olomouc Region in the amount of CZK half a billion from the CZK 30 billion reserve that the government created in this year's state budget to finance the damage caused by the floods. The money will be used to cover the initial costs of dealing with the consequences of flood damage. Previously, the government had already released 80 million for the Moravian-Silesian Region and 60 million for the Olomouc Region for these purposes.
The government also agreed Parameters of the Ministry of the Environment's subsidy programme Živel 4 - Emergency aid, which is intended to serve municipal and regional governments with the provision of alternative accommodation for people whose homes or apartments have been destroyed or substantially damaged by a natural disaster. The programme will also be able to finance the provision of replacement space for closed schools, nurseries and other educational or training facilities. One billion crowns is available for the programme and the acceptance of applications will start on 1 November. Details of the programme include press release of the Ministry for Regional Development.
The government also expressed support for to the MP's draft amendment to the Building Act, which was prepared by Transport Minister Martin Kupka together with other MEPs. The amendment is part of the planned steps, the so-called legislative and technical bypass, to help make the construction procedure more accessible after problems with the introduction of its digitalisation. The amendment to the Act is intended to enable construction authorities, spatial planning authorities and other actors in the construction procedure to use some of the newly introduced information systems on a voluntary basis for a transitional period, or to use alternative procedures used before the new Construction Act came into force. In this way, it will be possible to ensure greater legal certainty for employees of building authorities and authorities concerned and to reduce the risk of sanctions for non-compliance with the milestones of the National Recovery Plan until the new digital construction procedure is launched.
Government of the Czech Republic/ gnews - RoZ
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