Acta Univ. Agric. Silvic. Mendelianae Brun. 2016, 64, 1001-1011

https://doi.org/10.11118/actaun201664031001
Published online 2016-07-04

Pricing Electric Power in the Czech Republic and in Selected Countries

Eva Mazegue Pavelková1, Iva Živělová2

1PPG Industries Czech Republic, s. r. o., Holandská 6/8, 639 00 Brno, Czech Republic
2Department of Regional and Business Economics, Faculty of Regional Development and International Studies, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic

This paper focuses on state intervention in the pricing of electricity from renewable power sources in the Czech Republic when compared with the pricing in the Slovak Republic, Germany, France and Italy. In these countries the state intervention is implemented in different forms, but the critical part of the price is regulated everywhere by the state. The price of electricity is determined by its production costs, which depend on the source from which electricity is produced. The highest cost of electricity is required to generate renewable energy, particularly solar power, while the lowest costs of power are associated with its production by coal-fired and natural gas-fired thermal power plants. However, hydroelectric power plants attain clearly the lowest cost for generating electricity. State intervention includes supporting power generation from renewable power sources by guaranteeing purchase prices.

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