The Czech Energy Act is in the process of being amended to comply with EU law. Once passed by the Senate and signed by the President, it will help to create a genuinely competitive market across the EU in electricity and natural gas as well as improve protection for customers.
Choosing a natural gas supplier
From 1 January 2005, all end customers (apart from residential customers) who satisfy technical criteria relating to real time data and remote data transmission will be able to choose their natural gas supplier. Licensed energy producers who burn natural gas to produce energy will also be able to choose their supplier.
From 1 January 2006, choice will be extended to all end customers (apart from residential customers) who satisfy the flow metering criteria.
From 1 January 2007, all end customers will be able to choose their natural gas supplier.
Separate transmission system operators
From 1 January 2005, transmission system operators will not be allowed to engage in non-transmission activities and will be subject to new rules governing their decision-making processes, organisation and legal status.
Separate distribution system operators
Distribution system operators must also cease to be involved in non-distribution activities by 1 January 2007, apart from certain operators with fewer than 90.000 connected end customers and others exempted by the European Commission. From 2007, those distribution system operators with more than 90,000 connected end customers will not be permitted to hold a licence for trade with energy, energy production or trade with natural gas. The ban includes holding these licences in other, indirect ways.
Protected customers
Until 31 December 2004, protected customers have a right to energy supply at regulated prices from distribution system operators, unless the operators have fewer than 100 000 end-users. From 1 January 2005, protected customers become entitled to energy supply at regulated prices from licensed energy traders.
New licensing system
The Act shortens the periods for which licences are granted and introduces a new exclusive licence for energy market operators. It also specifies new requirements for licence applications and, for the first time, allows licenses to be granted to foreign individuals and companies. The Energy Regulation Office will also be given power to cancel inactive licences (where the licensed activity has not been carried out for 2 years or more).
For more information, please contact Radim Kotlaba at [email protected] or on +420 221 098 830
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