Friday, 24 May 2013

Photovoltaic Industry Association prepares suit against head of Energy Regulatory Office

ČTK |
11 February 2013

Prague, Feb 10 (CTK) - A criminal complaint is being prepared against Energy Regulatory Office (ERU) chairwoman Alena Vitaskova due to alleged data manipulation, Czech Photovoltaic Industry Association (CZEPHO) executive director Zuzana Musilova said in discussion programme Questions on Czech TV yesterday.

The criminal complaint is related to calculations concerning the introduction of solar tax on electricity from photovoltaic plants.

Musilova argues that the current action that the ERU has filed at the public prosecutor's office due to the allegedly illegal setting of purchasing prices of electricity on the basis of an audit is to cover the faults made under the ERU's current management.

The fact that the ERU has submitted two different calculations for the hearing on the solar tax can serve as an example of the faults. Each of the calculations brought different results. The calculations were evidently manipulated and wrong. Based on these calculation, the Constitutional Court decided that the solar tax was legal, Musilova declared.

The Czech TV cited parts of the document that the ERU submitted to the state attorney's office in Prague. There are words about suspicion of abuse of power by an unknown perpetrator or perpetrators from the ranks of ERU former employees.

They allegedly failed to respect the condition that investment into solar plants should return in fifteen years and set the period of time at twelve years.

The purchasing prices of electricity were excessively high for six years, from 2005 to 2011. In 2006, for example, electricity was purchased for Kc13,200 a megawatt hour but by law it should have been only Kc10,350 a megawatt hour. At the same time, ERU current management calculated that the total unlawful enrichment is Kc162bn.

The CZEPHO considers as a key problem that it had no chance to see the documents which served as a basis for the audit and for the ERU's conclusions about the prices, Musilova said.

"It is desirable and of key importance that Mrs chairwoman documents these claims and presents this audit to the public," she stated, adding that otherwise Vitaskova was acting counter the law on free access to information.

Deputy Industry and Trade Minister for energy Pavel Solc said in yesterday's debate that the ministry wanted to halt support to renewable energy sources from electricity prices. Investment support will target only the most effective sources or those that have a synergic effect.

"So undoubtedly support will target hydroelectric plants, probably also some wind farms," he added.

Solc confirmed that the ministry intended to halt support to photovoltaic plants and operating support to biogas stations except for those closely tied, for example, to livestock breeding or gas from sludge dumps.

Former environment minister Martin Bursik (Greens) claims that after the "photovoltaic tunnel", a "nuclear tunnel" will follow.

According to the state energy strategy, operating support to renewable sources is to be moved to nuclear energy. Consumers would thus pay the difference between the market price and the price guaranteed to nuclear plants' operators, he said.

Now, the market price is EUR40 a megawatt hour but nuclear plants in Europe are being built with planned profitability at the price of EUR70 a megawatt hour. The difference of EUR30 a megawatt hour will be paid by consumers, he noted.

This will make 80 hellers per kilowatt hour of electricity, which is more than by solar plants, he warned.

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