TNBiz (TNBiz)
Finance  |  October 12, 2010 14:55:05

District Heating Association rejects the proposal of the Minister of Finance to charge higher prices for emission allowances


Mediafax

PRAGUE (MEDIAFAX) - District Heating Association of the Czech Republic (TSČR) rejected the proposal of the Minister of Finance Miroslav Kalousek (TOP09) that the increases in electricity prices in the next year was offset by toll revenue from emission allowances. Informed the spokesman on Tuesday TSČR Paul Kaufmann.

According TSČR this proposal would have negative social impacts on the 1.6 million households in the CR, which remove heat from the heating plants.

"We consider it unethical and totally unacceptable to consumers through increased prices of heat thermal energy subsidizing highly profitable operator of photovoltaic power plants," said Chairman of the District Heating Association Alexei Newbie.

Proposal of the Minister of Finance goes according to plan TSČR European Union for the provision of free emission allowances, or the gradual rise of auctions of emission allowances after 2012.

"Application of the proposal of the Minister of Finance would ultimately lead to a substantial reduction in investment in clean energy recovery in the Czech Republic," said Newcomer. Under current EU legislation should be part of the funds raised by selling allowances to firms to modernize domestic energy.

If the CHP will have to pay for all permits will be forced by TSČR reflect these additional costs into the price of heat plus the cost of environmental measures already initiated, which further increases the rate of heat. Alternatively, the heating plant will have significantly reduced the originally planned investment in environmental measures.

The application proposal on charging for emission allowances to CHP plants have obtained free of charge, according to the Association for District Heating in fact meant that the state punishes those households that are supplied with heat from cogeneration ecological resources. These households also often among the socially disadvantaged population group.

David Vandrovec, vandrovec@mediafax.cz

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