Czechia warned of a new energy crisis in Europe

Europe is entering a new phase of the energy crisis, and its consequences may be felt most strongly by Central European countries. This warning was issued by the Czech Minister of Industry and Trade, Karel Havlíček, at an energy summit at the Prague University of Economics and Business.

According to him, the sharp rise in wholesale prices has not yet fully reflected on household and company bills thanks to long-term contracts, but in the coming months the price increase will gradually reach end consumers.

“We are entering the next phase of the energy crisis. The wars in Ukraine and the Middle East are pushing prices up,” — said Havlíček.

Gas in Europe has more than doubled in price since the beginning of the year

The main source of pressure remains gas prices. At the beginning of this week, the October gas futures contract at the largest European hub TTF exceeded €84 per MWh — this was the highest since late 2022.

Later, quotes fell to about €78 per MWh, but even this level is more than double the gas price at the beginning of 2026.

At the same time, electricity is becoming more expensive, since gas-fired power plants in many European countries remain that very last necessary source of generation that determines the market price of electricity during high demand.

The situation is complicated by the war in the Middle East and problems with LNG supplies through the Strait of Hormuz. The disruption of exports from Qatar, which accounts for about a fifth of global liquefied gas supplies, has intensified competition between Europe and Asia for available fuel cargoes.

European gas storage facilities also entered the autumn season with lower inventories than a year ago. According to Financial Times, their filling level is approximately 69% compared to about 80% a year earlier.

Czechia wants to change the emissions trading system

Havlíček said Prague intends to seek allies among other EU countries to take measures that should limit the impact of expensive energy resources on industry and the public.

One of the main demands of Czechia will be the modification of the European emissions trading system.

According to the minister, the European Union must postpone the launch of ETS 2, which from 2028 should extend emissions trading to road transport and building heating.

Czechia also intends to seek restrictions in the current ETS 1 system at least for individual industrial sectors. Havlíček believes that the current price of allowances further reduces the competitiveness of European producers against the backdrop of high energy prices.

This is the position of the Czech government. Changing or delaying the EU-wide system will require coordination at the level of EU institutions and other member states.

Central Europe found itself in the most difficult situation

Havlíček believes that Central Europe is now especially vulnerable. Czechia has relatively cheap domestic generation sources, but its market prices are closely linked to the situation in the common European energy system and the cost of gas.

The minister also linked the region's current problems to the closure of German nuclear power plants, the gradual decommissioning of part of the coal generation, and insufficiently rapid construction of new capacities.

According to him, Scandinavia and France are in a more advantageous position thanks to a high share of nuclear and renewable energy, while Central European countries have to simultaneously replace old generation and invest in new sources.

“Europe made mistakes, some changes were made too hastily. We lost 20 years because of this. Correcting the situation may take almost as long,” — said Havlíček.

Czechia admits the introduction of price caps

Earlier, the minister also said that the Czech government is ready to consider the introduction of maximum electricity prices for producers and suppliers in the event of further sharp price growth.

At what exact level of market prices such a mechanism could be activated, Havlíček has not yet specified. According to him, the proposed scheme should not require additional state budget expenses.

Risks for Europe before the heating season are also recognized by energy market participants. The high cost of gas in summer limited economic incentives for its injection into storage facilities, and disruptions in Middle Eastern LNG further narrowed supply. As a result, the situation in winter will largely depend on temperatures, consumption levels, and Europe's ability to attract additional LNG supplies.

Source: Český rozhlas, iDNES, Financial Times