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Energy Policies of IEA Countries - Czech Republic- 2005 Review | |
| 2005 | ||
| Executive Summary | Size: 2228 KB | |
| Table of Contents | ISBN: 92-41-0933-1 | |
| Related Press Release | No. of Pages: 156 | |
| Download the PDF | Type of Document: Country Review (Book) | |
The Czech Republic has made a remarkable transition from a command-and-control economic structure to one shaped largely by market forces. The energy sector is no exception to this as can be seen in the country’s membership in the IEA and its compliance with EU directives on energy. The Czech government’s 2004 State Energy Policy is consistent with the three E’s of successful energy policy: Energy Security, Environmental Protection, and Economic Efficiency. Improved environmental performance has reduced greenhouse gases and other emissions. CO2 emissions have fallen by 25% from 1990 to 2002 and the country should have no problem achieving its Kyoto target. Energy efficiency has also improved substantially over this time. Nevertheless, emissions per unit of GDP and energy intensity are still among the highest in the IEA, suggesting that further improvement may be possible at a relatively low cost. The IEA urges the Czech government to pursue greater energy efficiency and emissions reductions with concrete policies and measures, particularly in the transport and building sectors as well as with the Kyoto flexible mechanisms. The structure for market reform in the gas and electricity sectors is sound with gradual market opening, non-discriminatory third party network access and an independent regulator. Nevertheless, the report cautions on three aspects of this reform. First, the industry is marked by horizontal and vertical market dominance of the incumbent suppliers. Second, the strength and independence of the regulator and the competition authority should be reinforced and third, consumers eligible for competition must be vigilant in purchasing their energy since they will no longer have recourse to regulated tariffs |
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