Act No. 367 / 2021 Coll.
Act on measures to move the Czech Republic to low carbon energy and amending Act No. 165 / 2012 Coll., on Supported Energy Sources, as amended
Valid
Law
Effective from 01.01.2022
367
THE LAW
of 15 September 2021
on measures to move the Czech Republic to low-carbon energy and amending Act No. 165 / 2012 Coll., on Supported Energy Sources, as amended
Parliament has decided on this law of the Czech Republic:
MEASURES FOR THE TRANSITION OF THE CZECH REPUBLIC TO THE LOW CARBON ENERGY
Subject matter and purpose of the adjustment
(1) This Act provides for:
(a) the rights and obligations associated with the transition of the Czech Republic to low-carbon energy through the provision of electricity generation in low-carbon production plants and its supply to the electricity system of the Czech Republic; and
(b) measures to ensure a commonly accepted internal rate of return on investment in low-carbon production incurred by a beneficiary investor of a low-carbon production plant.
(2) The purpose of this Act is:
(a) to contribute to decarbonisation of electricity production in order to protect the climate; and
b) to ensure the energy security of the Czech Republic through the production of electricity in low-carbon production plants in the Czech Republic and to increase the share of electricity from low-carbon production in gross final consumption of energy in the Czech Republic while taking into account customers' interest in minimising the impact of measures on energy prices for customers in the Czech Republic.
Basic concepts
For the purposes of this Act:
(a) a low-carbon electricity production plant (1) on the territory of the Czech Republic with a nuclear reactor with installed capacity of 100 MW minimum electrical output connected to the electricity system after 2030 (2), the construction and maintenance of which is not directly or indirectly dependent on technology from a supplier who is a national of a State which has not acceded to the World Trade Organisation Agreement on Government Procurement or from persons of such a supplier controlling or controlled;
(b) the buyout agreement concluded between the Czech Republic represented by the Ministry of Industry and Trade (hereinafter referred to as "the Ministry") and the authorised investor of a low-carbon production facility governing reciprocal rights and obligations to ensure the generation and supply of electricity from a low-carbon production facility to the electricity system of the Czech Republic and to ensure the return on investment in a low-carbon production plant by the authorised investor of a low-carbon production plant;
(c) by an authorised investor of a low-carbon production plant, a person who holds a state authorisation for the construction of a power plant in a nuclear plant under the Energy Act and, for the sole purpose of the provisions of § 9b, a person who has submitted a request for a state authorisation for the construction of a power plant in a nuclear plant under the Energy Act or is preparing such a request
(d) the implementation price for electricity produced in a low-carbon production plant and delivered to the electricity system of the Czech Republic, received by a legitimate investor of a low-carbon production plant from the Ministry under a buyout contract,
(e) a contract concluded between the Czech Republic, represented by the Ministry, the market operator and the eligible investor of a low-carbon production plant, governing the conditions for payment of compensation and governing reciprocal rights and obligations to ensure the production and supply of electricity from a low-carbon production plant to the electricity system of the Czech Republic,
(f) the compensation scheme conditions for the compensation of the risks associated with the construction, operation and closure of a low-carbon production plant in the form of compensation or negative compensation and the method of determining and implementing such payment under this law;
(g) the balancing price for electricity produced in a low-carbon production plant and delivered to the electricity system of the Czech Republic, which will be guaranteed to a legitimate investor of a low-carbon production plant under a compensation scheme contract;
(h) the compensation payment to the eligible low-carbon investor for the purpose of attaining the balancing price under the compensation scheme contract against the electricity reference price;
(i) the compensation period for the purposes of the compensation scheme for the period laid down in the compensation contract;
(j) a negative compensation payment by an eligible investor of a low-carbon production plant to the Ministry in the case of a higher reference price for electricity than the compensatory price; and
(k) the reference price for electricity, the methodology of which is laid down by the compensation scheme contract.
Promoting the energy security of the Czech Republic through the production of electricity in low-carbon production plants
(1) The promotion of the energy security of the Czech Republic through the production of electricity in low-carbon production plants in the Czech Republic and the increase in the share of electricity from low-carbon production in gross final consumption of energy in the Czech Republic can be ensured by means of a buyout agreement or a compensation arrangement.
(2) The method of promoting the energy security of the Czech Republic referred to in paragraph 1 shall be laid down by the Government, on a proposal from the Ministry, within 4 years of the date of the decision to grant state authorisation for the construction of a power plant under the Energy Act in a low-carbon production plant.
Purchase contract
(1) Where the Government, by means of a buyout agreement, provides for a method of support under Paragraph 2a, the Ministry shall submit to the eligible low-carbon producer investor a proposal for the conclusion of a buyout agreement no later than 4 years after the date of the decision to grant State authorisation for the construction of a nuclear power plant under the Energy Act.
(2) The purpose of the buyout contract is:
(a) the adjustment of reciprocal rights and obligations to ensure the production of electricity from a low-carbon production plant;
(b) ensuring the supply of electricity from a low-carbon production plant to the electricity system of the Czech Republic; and
(c) ensuring support for the income of the beneficiary investor of the low-carbon production plant during the operating phase of the low-carbon production plant with a view to achieving a return on investments made by that investor.
(3) The buyout contract requires written form and must contain at least:
(a) identification of the eligible low-carbon investor;
(b) the obligation of the Czech Republic to provide for the purchase of electricity from a legitimate investor of a low-carbon production plant from its operated low-carbon production plant at the implementation price for a specified period of time;
(c) hedging mechanisms in the event of its failure to comply, the rules for its amendment and termination;
(d) the obligation of the authorised investor of a low-carbon production plant to ensure the production and supply of electricity from the low-carbon production plant operated by it to the electricity system of the Czech Republic for a specified period of time;
(e) the amount and method of setting the implementation price, the rules for verifying its adequacy by the Ministry no later than 5 years after the start of the supply of electricity from the low-carbon production plant to the electricity system of the Czech Republic and thereafter regularly at least every 5 years;
(f) the obligation for the authorised investor of a low-carbon production company to ensure, within a specified time limit within the low-carbon production plant operated by it, that the installed capacity is reached at a specified level but at least 100 MW;
(g) the obligations of the beneficiary investor of a low-carbon production plant in the event of a change in ownership of the low-carbon production plant operated by him;
(h) the determination of responsibility for the derogation at the transmission point of the connection of a low-carbon transmission system product;
(i) establishing a basic time period for the purchase of electricity from a low-carbon production plant;
(j) establishing a basic time period for evaluating and clearing the purchase of electricity from a low-carbon production plant; and
(k) contractual fines for non-compliance with the obligations referred to in points (b), (d), (f) and (g).
(4) The buyout contract is concluded for a period of at least 30 years, with the possibility of an extension of at least 10 years, including repeatedly, but not later than the end of the operation of the low-carbon production plant. Government approval is required for the conclusion of a contract.
(5) Rights and obligations under the buyout agreement may be transferred by the Czech Republic to another person to be created under the law.
(6) The Ministry will not submit a proposal for the conclusion of a buyout agreement to the eligible low-carbon investor if the performance of the contract could jeopardise the security, sovereignty, energy security, long-term stability of energy supply, significant assets or other important interest of the Czech Republic. In assessing this issue, the Ministry will request binding opinions from the Ministry of the Interior, the Ministry of Foreign Affairs, Military Intelligence, the Office for Foreign Relations and Information, the Security Information Services and the National Office for Cyber and Information Security. In the event of a dissenting binding opinion of at least one of the institutions referred to above, the Government shall submit the full text of the proposal to conclude the buyout agreement to the Chamber of Deputies and the Senate at the same time. If the agreement of the two chambers of Parliament is not given within 60 days of the submission of a proposal for the conclusion of a buyout contract, such a proposal may not be submitted to the eligible low-carbon producer investor.
(7) A buyout contract is not a public contract. In matters of the buyout agreement, the Ministry is understood to mean the Czech Republic represented by the Ministry.
Compensation contract
(1) If the Government provides for a method of aid by means of a compensation contract under Paragraph 2a, the Ministry shall submit to the market operator and the authorised low-carbon producer investor a proposal for the conclusion of a compensation arrangement no later than 6 years after the date of the decision to grant State authorisation for the construction of a nuclear power plant under the Energy Act.
(2) The purpose of the compensation contract is to regulate the mutual rights and obligations to ensure the income support of an eligible low-carbon investor with a view to achieving a return on investment by that investor.
(3) The compensation agreement requires a written form and must contain at least:
(a) identification of the eligible low-carbon investor;
(b) the conditions of the compensation scheme, including the methodology for determining the electricity reference price;
(c) hedging mechanisms in the event of its failure to comply, the rules for its amendment and termination;
(d) the initial level of the equalisation price and the reasons for subsequent changes to the level of the equalisation price, the rules for verifying its adequacy by the Ministry no later than 5 years after the start of the supply of electricity from the low-carbon production plant to the electricity system of the Czech Republic and thereafter at least every 5 years;
(e) fixing the compensation period for the low-carbon compensation scheme;
(f) setting out the rules, deadlines and time limits for evaluating and clearing the aid for the production of electricity from a low-carbon production plant, including the time limit for calculating the compensation and the negative compensation, the time limit for payment of compensation, the time limit for payment of the negative compensation; and
(g) the specification of the operational data necessary for the proper performance of the contract and the extent of the supporting documents submitted to the Ministry.
(4) The compensation contract is concluded for a period of at least 30 years, with the possibility of extending it by at least 10 years, even repeatedly, but at most until the end of operation of the low-carbon production plant. Government approval shall be required to conclude or extend the arrangement. The agreed provisions in the contract on the compensation arrangements shall not be affected by any amendments to this law or other legislation, unless the parties have otherwise assessed in writing.
(5) The Ministry ensures that the compensation scheme is compatible with the European Union rules on public aid.
(6) The Ministry will not submit a draft compensation agreement to the eligible low-carbon investor if the performance of the compensation agreement could jeopardise the security, sovereignty, energy security, long-term stability of energy supply, significant assets or other important interest of the Czech Republic. In assessing this issue, the Ministry will request a binding opinion from the Ministry of the Interior, the Ministry of Foreign Affairs, Military Intelligence, the Office for Foreign Relations and Information, the Security Information Services and the National Office for Cyber and Information Security. In the event of a dissenting binding opinion of at least one of the institutions referred to above, the Government shall submit the full text of the proposal to conclude the compensation agreement to the Chamber of Deputies and the Senate at the same time. If the agreement of the two chambers of Parliament is not given to them within 60 days of the submission of a proposal for the conclusion of a compensation scheme, such a proposal may not be submitted to the eligible low-carbon producer investor.
(7) The right to compensation for the relevant compensation period is conferred on the eligible low-carbon producer investor under the conditions laid down in the compensation contract.
(8) The Ministry and the operator of the market are jointly and severally bound to the eligible low-carbon producer investor. The compensation payment shall be made by the Ministry to the eligible low-carbon investor no later than the time limit laid down in the compensation contract. The Ministry is entitled to fulfil its obligation to pay compensation through a market operator.
(9) A non-refundable compensation for the relevant compensation period shall be paid by the eligible investor of the low-carbon production plant to the Ministry for the special account of the Ministry held with the Czech National Bank, no later than the deadline specified in the compensation agreement.
(10) The Government, by regulation, lays down rules, deadlines and time limits for the granting of a subsidy to the market operator to finance measures for the transition to low-carbon energy by means of a compensation arrangement under Paragraph 9a.
(11) The compensation agreement is not a public contract. In the case of a compensation agreement, the Ministry is the Czech Republic represented by the Ministry.
Financing of low-carbon construction
(1) At the request of an authorised low-carbon producer investor, a repayable financial assistance may be granted from the State budget of the Ministry for the construction of a low-carbon production plant. The Ministry does not call for applications for repayable financial assistance. Repayable financial assistance may be provided in Czech crowns, in euro currency or in another currency in which the implementation price will be fixed.
(2) The annual part of the decision to grant repayable financial assistance shall include, in addition to the formalities laid down by the administrative rules and by law governing the budgetary rules, the determination of the interest rate of repayable financial assistance for the period from the date of the acquisition of the authorisation under Paragraph 9 (1) (f) of the Atomic Act, with no interest during the construction of the low-carbon production plant. The annual interest rate shall be determined as fixed by the maturity date of the repayable financial assistance equal to the cost of financing the State's debt determined in percentage terms by the Ministry of Finance in that year plus 1 percentage point, with an annual interest rate of at least 2%.
(3) The repayment of the principal of the repayable financial assistance is the income of the State budget, the chapter of the Ministry. Interest on the repayable financial assistance calculated in accordance with paragraph 2 paid by the eligible investor of the low-carbon production plant shall be the income of the State budget, Chapter State debt.
(4) Foreign exchange payments from and to the State budget, linked to the provision and repayment of the repayable financial assistance, are facilitated by the Treasury's Treasury's liquidity management and management accounts, including accounts established in or abroad in the euro currency of banks or banks, or other currencies, in accordance with the law governing budgetary rules.
(5) The foreign exchange market rate declared by the Czech National Bank for 30 June of the year preceding the year in which the granting of the refundable financial assistance starts shall be used for the purpose of facilitating the foreign exchange payment from the State budget. For the purpose of facilitating the foreign currency payment to the State budget for the purpose of paying the repayable financial assistance, the same rate shall be used as for the payment from the State budget for the purpose of providing the repayable financial assistance.
(6) Financial operations in foreign currencies for the provision of repayable financial assistance shall not be subject to trade in investment instruments, including derivatives, in order to limit their underlying monetary risks.
(7) The funds that are provided to the eligible low-carbon investor from the state budget are received by the authorised low-carbon investor in the accounts of the subordinate Treasury and held with the Czech National Bank under the law governing budgetary rules. The Czech National Bank also keeps other funds in these accounts of the subordinate Treasury, which will be transferred or accepted by the authorised low-carbon producer investor to these accounts.
(8) The funds of the Treasury held in the accounts referred to in paragraph 7 shall not be held outside the accounts of the State Treasury, and the authorised investor of a low-carbon production company may not deposit or invest such funds in financial instruments on the financial market.
Rules for determining the implementation price and amending it
(1) The implementation price shall be determined in such a way as to cover the economically justified costs of ensuring the reliable, safe, necessary and efficient performance of the licensed low-carbon production activity and the costs associated with the decommissioning of the low-carbon production plant, depreciation and reasonable profit, ensuring in the sector concerned, in accordance with a commonly acceptable internal rate of return on investments made in the low-carbon production plant under the purchase contract. The implementation price shall be determined on the basis of the budget price of the low-carbon construction plant.
(2) A change in the implementation price may be possible if it is found to be disproportionate in the examination provided for in Article 3 (3) (e) or after mutual agreement between the Ministry and the authorised investor of the low-carbon production plant earlier.
Rules for fixing the countervailing price and compensation
(1) The countervailing price is established in such a way as to cover the economically justified costs of ensuring the reliable, safe, necessary and efficient performance of the licensed low-carbon production activity and the costs associated with the decommissioning of low-carbon production, depreciation and reasonable profit ensuring in the sector concerned, in accordance with the normally acceptable internal rate of return laid down in the compensation scheme contract, an appropriate rate of return on investments made in the low-carbon production plant under the compensation contract. The compensation agreement sets out the initial level of the countervailing price, taking into account in particular the budgetary price of the construction of the low-carbon production plant and the reasons for subsequent changes to the level of the countervailing price.
(2) The determination of compensation and the negative compensation is made on the basis of the rules laid down in the compensation contract.
Conditions for purchasing electricity from a low-carbon plant
(1) The Ministry shall entrust a legal person with 100% ownership of a State which holds a licence to trade in electricity under the Energy Act (hereinafter referred to as "the entrusted person") with the fulfilment of the obligations arising from the buyout agreement and obligations under that Act.
(2) The accounts of electricity purchased from a low-carbon production plant shall be made on the basis of the values measured in accordance with legislation3), registered by the market operator under the implementing legislation.
Transmission and recording of measured values of electricity from low-carbon production and other necessary data
(1) The transmission system operator or distribution system operator shall transmit to the market operator in electronic form the full and true measured values of the amount of electricity supplied by the eligible investor of the low-carbon production plant to the Czech Republic's electricity system at the transmission point of connection of the low-carbon production plant to the transmission system in accordance with the implementing legislation5) and keep records thereof.
(2) By decree, the Ministry sets out the scope of the data, dates and means of transmission and the recording of the measured values of electricity from a low-carbon production plant.
(3) In the case of aid through a compensation scheme, the eligible investor of the low-carbon production plant shall, to the extent provided for by the compensation scheme, register in the market operator system and transmit to the market operator in electronic form the full and true measured or calculated values and other data broken down by the transmission points of the low-carbon electricity plant and their records, and provide additional information on the data transmitted to the market operator, on request; the method of registration, transmission of data, the scope of the data and the date of transmission and the data registration shall be laid down by the compensation scheme contract.
(4) The licence holder or any other legal person or any natural person in business shall be required to provide the Ministry and the Energy Regulatory Authority (hereinafter referred to as "the Office '), upon written request, with the complete, correct and true documentation and information necessary for the exercise of their powers under this Law within a reasonable period of time.
The transmission system service price component and the distribution system service price component
(1) In the case of the financing of the transition measures to low-carbon energy by means of a buy-in agreement, the transmission system operator and distribution system operator shall charge the transmission system service price component and the distribution system price component for the production of electricity from a low-carbon production plant to the extent that the transmission system operator or distribution system operator is obliged to charge those components to the electricity market participants and subsequently to pay the delegate.
(2) In the case of the financing of the transition measures to low-carbon energy, the market operator will charge the price component of the distribution system service and the price component of the transmission system for the production of electricity from the low-carbon production plant in which the regional distribution system operator or the transmission system operator and the regional distribution system operator are obliged to charge it to the market operator.
(3) The Energy Regulatory Authority ("the Authority"), in the case of the financing of measures to switch to low-carbon energy by means of a buyout contract, sets out the manner and dates of accounting and payment of the component of the price of the transmission system service and the component of the price of the distribution system for the production of electricity from a low-carbon production plant between the entrusted entity and the transmission system operator and between distribution system operators.
(4) In the case of financing measures for the transition to low-carbon energy through a compensation scheme, the Authority will determine the manner and timing of accounting and payment of the component of the price of the transmission system service and the component of the price of the distribution system service for the production of electricity from a low-carbon production plant between the market operator and the transmission system operator and between distribution system operators.
Financing of measures to switch to low-carbon energy through a buyout contract
(1) The costs of financing measures to switch to low-carbon energy through a buyout contract are borne by the Ministry of Finance on the basis of funds consisting of:
(a) the sales of the entrusted entity from the sale of electricity purchased from a low-carbon plant;
(b) the transmission system operator's revenues from payments of the transmission system service price component for the production of electricity from a low-carbon production plant;
(c) the revenues of the distribution system operator from payments of the price component of the distribution system service for the production of electricity from a low-carbon production plant; and
(d) a contribution from the State budget pursuant to paragraph 9.
(2) By a price decision, the Authority sets out the component of the price of the transmission system service and the component of the price of the distribution system for the production of electricity from a low-carbon production plant for:
(a) a transfer point with a transmission or distribution system at a voltage level of very high voltage and high voltage in CZK / MW / month according to the agreed reserved power at the transfer point in the connection contract under the Energy Act; the reserved power may be negotiated in the range of the highest reserved power from all connection points constituting the given transfer point to the sum of the reserved power limits of all connection points constituting the given transfer point; and
b) a transfer point with a distribution system at low voltage voltage voltage in CZK / A / month according to the nominal current value of the main circuit breaker in front of the electrometer at the transfer point; If the transfer point is not equipped with the main circuit breaker in front of the electrometer, the nominal current value of the nearest pre-set circuit breaker shall be used.
(3) In determining the price component of the transmission system service and the price component of the distribution system service for the production of electricity from a low-carbon production plant, the Authority shall take into account the positive or negative difference between the expected market price of the low-carbon power plant on the organised markets and the implementation price; If the difference is positive, when the expected market price of electricity from the low-carbon production plant on the organised markets is higher than the implementation price, such a positive difference will be used to cover the cost of financing the measures for the transition to low-carbon energy, with the amount of such a positive difference being humiliated by the component of the price of the distribution system service and the component of the price of the electricity service provided by the Electricity Support Act.
(4) For the settlement period, the customer shall pay for the generation of electricity from a low-carbon production plant at the level of the product of the unit component of the price of the transmission system service or of the unit component of the price of the distribution system for the production of electricity from a low-carbon production plant established by the Office and the size of the agreed reserved power input at each transfer point or, in the case of low-voltage collection, the nominal current value of the main circuit breaker in front of the electrometer at the transfer point.
(5) The local distribution system operator (4) pays the distribution system operator (s) to which the local distribution system is connected, in addition to the payments received from the electricity market participants for the demand or transmission point connected to the local distribution system (s), the price component of the distribution system for the production of electricity from a low-carbon production facility equal to the difference between the value of the agreed input at the local distribution system transfer point and the sum of the payments of the distribution system price of the electricity market participants for the demand and transmission points connected to that local distribution system.
(6) In the event that the demand point of the customer connected to the distribution system at the voltage level of the low voltage is not equipped with the main circuit breaker in front of the electrometer, the nominal current value of the closest pre-protection element shall be used to determine the amount of payment of the price of the distribution system service for the production of electricity from the low-carbon production plant.
(7) The price component of the transmission system service and the price component of the distribution system service for the production of electricity from a low-carbon production plant are charged in proportion to the number of days in which the demand point or low-carbon production plant is connected in a given month to the number of days in a calendar month.
(8) The funds intended to finance the transition measures to low-carbon energy by means of a buyout contract are held separately by the Czech National Bank in a separate account held by the Treasury under the law governing the budgetary rules.
(9) The Government shall, by means of a regulation, establish the State budget resources for the provision of a contribution to the financing of measures for the transition to low-carbon energy by 30 September of the calendar year preceding the calendar year for which the Office determines the component of the transmission system service price and the component of the price of the distribution system service for the production of electricity from low-carbon production. The national budget resources for the grant of the contribution shall be determined on the basis of the funds referred to in points (a) to (c) of paragraph 1, in order to cover, together with them, the total expected funds to finance the transition measures to low-carbon energy.
(10) The government shall set by regulation the maximum permissible amount of the transmission system service price component and the distribution system price component of the low-carbon power plant in the event of a negative difference between the expected market price of the low-carbon power plant on the organised markets and the implementation price no later than 31 December 2035.
(11) By 30 June of the following calendar year at the latest, the authorised person shall pay the market operator a positive difference between the total revenue of the authorised persons and the cost of covering the support for low-carbon electricity for the last technically completed calendar year determined by the Authority.
Financing of measures to switch to low-carbon energy through a compensation scheme
(1) The costs of financing measures for the transition to low-carbon energy through the compensation scheme contract are covered by funds consisting of:
(a) negative compensation payments;
(b) the transmission system operator's revenues from payments of the transmission system service price component for the production of electricity from a low-carbon production plant;
(c) the revenues of the distribution system operator from payments of the price component of the distribution system service for the production of electricity from a low-carbon production plant; and
(d) a contribution from the State budget pursuant to paragraph 11.
(2) The market operator has the right to cover the costs of payment of the compensation and the related costs before payment to the eligible investor. This is without prejudice to the obligations of the Ministry and the market operator under the compensation scheme contract.
(3) By a price decision, the Authority will determine the component of the price of the transmission system service and the component of the price of the distribution system for the production of electricity from a low-carbon production plant for:
(a) a transfer point with a transmission or distribution system at a voltage level of very high voltage and high voltage in CZK / MW / month according to the agreed reserved power at the transfer point in the connection contract under the Energy Act; the reserved power may be negotiated in the range of the highest reserved power from all connection points constituting the given transfer point to the sum of the reserved power limits of all connection points constituting the given transfer point; and
b) a transfer point with a distribution system at low voltage voltage voltage in CZK / A / month according to the nominal current value of the main circuit breaker in front of the electrometer at the transfer point; If the transfer point is not equipped with the main circuit breaker in front of the electrometer, the nominal current value of the nearest pre-set circuit breaker shall be used.
(4) When determining the transmission system service price component and the distribution system price component for the production of electricity from a low-carbon production plant, the Authority shall take into account the difference between the reference electricity price and the balancing electricity price.
(5) For the settlement period, the customer shall pay for the generation of electricity from a low-carbon production plant at the level of the product of the unit price component of the transmission system service or unit price of the distribution system for the production of electricity from a low-carbon production plant established by the Office and the size of the agreed reserved power input at each transfer point formed by the main lines or, in the case of a low-voltage supply, the nominal current value of the main circuit breaker in front of the electrometer at the transfer point. In the event of a change in the price component of the distribution system service and the price component of the transmission system service for the production of electricity from a low-carbon production plant referred to in paragraph 3, the customer shall, for the settlement period, pay the payment for the production of electricity from a low-carbon production plant in accordance with the first sentence set separately for each part of the settlement period with a different component of the price of the distribution system service and the price component of the transmission system for the production of electricity from a low-carbon production plant.
(6) The local distribution system operator (4) pays the distribution system operator (s) to which the local distribution system is connected (hereinafter referred to as the "superior distribution system"), payments for the production of electricity from a low-carbon production plant from the electricity market participants connected to the local distribution system of that operator. In addition, the local distribution system operator shall pay the parent distribution system operator payments equal to the difference in payments corresponding to the sum of the agreed reserved power at all transfer points comprising the main lines of the local distribution system with the superior distribution system and the sum of payments paid by the electricity market participants whose facilities are connected to that local distribution system. Where there has been a change in the price component of the distribution system service and the price component of the transmission system service for the production of electricity from a low-carbon production plant referred to in paragraph 3, the local distribution system operator shall, for the settlement period, pay for the generation of electricity from a low-carbon production plant according to the sentences first and second set separately for each part of the clearing period with a different component of the price of the distribution system service and the price component of the transmission system for the production of electricity from a low-carbon production plant.
(7) Where the installation of the electricity market participant is connected to the transmission or distribution system by both the main and the back-up lines, the sum of the quantities of electricity collected through the main and back-up lines in a given settlement period shall be used to evaluate the maximum payment for the generation of electricity from a low-carbon production plant in accordance with paragraphs 5, 6 and 11.
(8) Where a reserved power input has not been agreed in the connection contract (6) at the transfer point but only the reserved power input for each connection point, the sum of the reserved power input of the main lines at one voltage level shall be used to determine the payment for the production of electricity from the low-carbon production plant. If the connection contract (6) did not negotiate a reserved power input at the transfer point or a reserved power input for each connection point, it shall be used to determine the payment for the generation of electricity from a low-carbon production plant instead of the agreed reserved power input at the transfer point of the above-agreed reserved power input at the individual voltage levels.
(9) The payment of the transmission system service price component and the transmission system price component for the production of electricity from a low-carbon production plant shall be charged in proportion to the number of days in which the transfer point exists in a calendar month to the number of days in a calendar month.
(10) The funds intended to finance measures for the transition to low-carbon energy through the compensation scheme contract are held separately by the market operator in special accounts with a bank or branch of a foreign bank in the Czech Republic or the Czech National Bank.
(11) Where the amount of the funds referred to in points (a) to (c) of paragraph 1 in a given calendar year is not sufficient to cover the compensation to the eligible low-carbon investor pursuant to Article 3a and the associated costs, the market operator shall be entitled to cover the remaining amount of the State budget subsidies before payment of the compensation to the eligible low-carbon investor. This is without prejudice to the obligations of the Ministry and the market operator under the compensation scheme contract. The granting of the subsidy shall be decided by the Ministry at the request of the market operator.
(12) The government shall determine by regulation the maximum permissible amount of the transmission system service component and the distribution system service component for the production of electricity from a low-carbon production plant until 31 December 2035.
Ensuring protection of the essential security interests of the Czech Republic in connection with the construction and maintenance of a low-carbon production plant or part of it
(1) The authorised low-carbon producer investor shall inform the Ministry of the expected progress of the selection of the low-carbon supplier or part thereof and conclude a contract with the Czech Republic represented by the Ministry before the start of the selection of the low-carbon supplier or part thereof, in which he undertakes to ensure compliance with the requirements to ensure the protection of the essential security interests of the Czech Republic, which will be communicated to him pursuant to paragraph 2, and to provide the Ministry with the information necessary for the determination and control of compliance with such requirements, until the completion of the construction and maintenance. The conclusion of a contract under the preceding sentence is a condition for the conclusion of a buy-in agreement or of a compensation arrangement or the provision of repayable financial assistance under this Act.
(2) The requirements to ensure the protection of the essential security interests of the Czech Republic are laid down by the Government and communicated by the Ministry to the eligible low-carbon producer.
(3) The determination and compliance with the requirements to ensure the protection of the essential security interests of the Czech Republic under this provision does not constitute a distortion of competition without a justifiable reason.
Control
The Office shall check compliance with obligations under this Act.
Infringement
(1) The transmission system operator or distribution system operator shall commit an infringement by not passing on the measured values of the quantity of electricity or by not keeping records of the quantity of electricity referred to in Article 7 (1).
(2) A fine of up to CZK 10 000 000 may be imposed for the offence referred to in paragraph 1.
(3) The offence referred to in paragraph 1 shall be dealt with by the Office.
AMENDMENT OF THE ENERGY SUPPORT LAW
In Act No. 165 / 2012 Coll., on Supported Energy Sources and on the Amendment of Certain Acts, as amended by Act No. 407 / 2012 Coll., Act No. 310 / 2013 Coll., Act No. 90 / 2014 Coll., Act No. 131 / 2015 Coll., Act No. 107 / 2016 Coll., Act No. 190 / 2016 Coll., Act No. 103 / 2017 Coll., Act No. 183 / 2017 Coll. and Act No. 541 / 2020 Coll., in Section 28 (1) at the end of point (d), the dot is replaced by a comma and the following point (e) is:
"(e) a positive difference between the expected market price of electricity from a low-carbon plant on organised markets and the implementation price pursuant to Article 9 (3) of the Act on measures to move the Czech Republic to low-carbon energy."
EFFECTIVE
This Act shall take effect on 1 January 2022.
Vondracek v. r.
Zeman v. r.
Babiš v. r.
1) Paragraph 2 (2) (a) (18) of Act No. 458 / 2000 Coll., on the Terms and Conditions of Business and on the Enforcement of State Administration in the Energy Sector and on the amendment of certain laws (Energy Act), as amended.
2) Paragraph 2 (2) (a) (4) of Act No. 458 / 2000 Coll., as amended.
3) Decree No. 359 / 2020 Coll., on Electricity Measurement, as amended. Act No. 505 / 1990 Coll., on Metrology, as amended.
4) Paragraph 2 (1) (w) of Act No. 165 / 2012 Coll., on Supported Energy Sources and on the amendment of certain laws, as amended.
5) Decree No. 408 / 2015 Coll., on Electricity Market Rules, as amended.
6) Paragraph 50 (3) of Act No. 458 / 2000 Coll., on the Terms and Conditions of Business and on the Enforcement of Government Administration in the Energy Sector and on the amendment of certain laws (Energy Act), as amended.
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Regulation Information
| Citation | Act No. 367 / 2021 Coll., on measures to move the Czech Republic to low carbon energy and amending Act No. 165 / 2012 Coll., on Supported Energy Sources, as amended |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 08.10.2021 |
|---|---|
| Effective from | 01.01.2022 |
| Effective until | - |
| Status | Valid |
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