Czechia to set up new state energy trader for cheap supplies

The trader would have the power to negotiate supplies directly with foreign gas producers at a better price, said Trade and Industry Minister Jozef Síkela on Monday (16 May), adding that gas supplies bought via the state trader would only be used for state needs. [Shutterstock/Studio Harmony]

The Czech Republic wants to establish a new “state energy trader” that would secure cheap energy supplies for the state and replace the private companies currently in charge of purchasing gas and other fuels.

The trader would have the power to negotiate supplies directly with foreign gas producers at a better price, said Trade and Industry Minister Jozef Síkela on Monday (16 May), adding that gas supplies bought via the state trader would only be used for state needs.

“Primarily, we want to use it (state energy trader) to buy gas. This will give the state the opportunity to influence energy security in the gas sector directly,” said Síkela.

The Czech trade and industry ministry revealed its plan to improve the country’s energy policy only two days ahead of the expected publication of the EU’s RePower plan. Besides the state energy trader, the ministry wants to support more energy-saving projects.

Meanwhile, Czech experts question how the European energy market works. The Czech Republic is currently entirely dependent on Russian gas imports flowing to the country via Germany.

According to Jaroslav Míl, a former government commissioner for nuclear energy and ex-director of Czech energy giant ČEZ, the EU electricity market does not exist, and Czechia should no longer rely on it. Recent price hikes are partly caused by “German nonsensical policy”, he added.

Míl also supported linking the electricity process with the costs of energy production in each EU country. “That’s the first path we should take,” Míl told Czech Television.

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