Czech government ready to cut energy prices if crisis escalates, says minister

Czech Deputy Prime Minister and Minister of Industry and Trade Karel Havlíček has warned that the government is prepared to intervene in energy pricing if escalating conflict in the Middle East triggers a major energy crisis.

Speaking at the District Heating and Energy Days 2026 conference in Olomouc, Havlíček said authorities could reduce the regulated component of electricity and gas prices to mitigate a sharp rise in costs. In extreme circumstances, he added, market prices for key energy resources could also be capped to maintain affordability for households and industry.

Havlíček noted that he had already briefed the State Security Council on the proposed measures, which include both baseline and crisis scenarios. The latter assumes a prolonged conflict involving the United States, Israel, and Iran, potentially leading to a global energy shortage and further price surges.

According to the minister, the trigger for implementing such measures would be developments in energy exchange prices.

“The only fair option is to reduce the regulated component of electricity and gas prices, which still accounts for 50 percent in the case of electricity and about 25 percent for gas. I am not saying this will happen. But if the state does it, we can very quickly, through the Energy Regulatory Office (ERÚ), effectively reduce prices without interfering with the market. Every consumer, every industrial player, every supplier, and every household will feel it immediately,” Havlíček said.

He emphasized that such steps would allow for a rapid decrease in end-user prices without direct market intervention, offering relief in the event of a severe energy shock.

By Vafa Guliyeva