Sat, Sep
66 New Articles

The Development of Energy Price Caps for Large Enterprises

The Development of Energy Price Caps for Large Enterprises

Czech Republic
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

Although negotiations regarding the method of capping electricity and gas prices are still ongoing, both at the national level and in the EU, the Government of the Czech Republic has already issued the expected amendment specifying the capping of energy prices for large enterprises.

According to the current EU Temporary Framework, large enterprises are limited in terms of the amount of support they can receive within the European Economic Area. This threshold is not limited in time, it will be applied to all support issued by individual Member States in connection with the Russian aggression in Ukraine. However, the established mechanism for calculating the threshold runs into problematic verification of approved support to large enterprises by individual states. In principle, the aforementioned amendment pre-empts the likely future adjustment of the EU Temporary Framework and introduces national thresholds that will only be applied to businesses within the Czech Republic.

The lowest threshold was set by the government at EUR 2 million. However, in the case of high eligible energy supply costs, it can be several times higher.

Large enterprises are now obliged to report the amount of property benefit (i.e. the amount of support exceeding the relevant thresholds) to the Ministry of Industry and Trade every quarter.

Exceeding this threshold during the quarter is not a violation, but the company will be obliged to transfer the excess property benefit back to the state budget.

By David Nemecek, Associate, Eversheds Sutherland

Czech Republic Knowledge Partner

PRK Partners, one of the leading Central European law firms, has been helping clients achieve their business objectives almost 30 years. Our team of lawyers, based in our Prague, Ostrava, and Bratislava offices, has a unique knowledge of Czech and Slovak law and of the business environment. Our lawyers studied at top law schools in the United States, United Kingdom, Switzerland and elsewhere. They also have experience working for leading international and domestic law firms in a number of jurisdictions. We speak your language, too. Our legal team is fluent in more than 15 languages, including all the key languages of the region.

PRK Partners has one of the most experienced legal teams on the market. We are consistently rated as one of the leading law firms in the region. We have received many significant honours and awards for our work. We represent the interests of international clients operating in the Czech Republic in an efficient way, combining local knowledge with an understanding of their global requirements in a business-friendly approach. We are one of the largest law firms in the Czech Republic and Slovakia. Our specialised teams of lawyers and tax advisors advise major global corporations as well as local companies. We provide comprehensive legal advice drawing on our profound knowledge of local law and markets.

Our legal advice delivers tangible results – as proven by our strong track record. We are the only Czech member firm of Lex Mundi, the world's leading network of independent law firms. As one of the leading law firms in the region, we have received many national and international awards, in some cases several years in a row. Honours include the Chambers Europe Award for Excellence, The Lawyer and Czech and Slovak Law Firm of the Year. Thanks to our close cooperation with leading international law firms and strong local players, we can serve clients in multiple jurisdictions around the globe. Our strong network means that we can meet your needs, wherever you do business.

PRK Partners has been repeatedly voted among the most socially responsible firms in the category of small and mid-sized firms and was awarded the bronze certificate at the annual TOP Responsible Firm of the Year Awards.

Our work is not only “business”: we have participated on a longstanding basis in a wide variety of pro bono projects and supported our partners from the non-profit sector (Kaplicky Centre Endowment Fund, Tereza Maxová Foundation, Czech Donors Forum, etc.).

Firm's website: www.prkpartners.com

Our Latest Issue