The new taxes on solar power and carbon credits in the Czech Republic will reportedly cut profit at the country’s major electricity provider, CEZ, by up to 4.6 billion crowns (US$242 million) in 2011, reports Reuters.
“In comparison with 2010, there will be two (new) effects… in 2011, which are in the amount of 4.6 billion,” said CEZ chief financial officer Martin Novak. “But it is not possible to deduce from this what the net profit in 2011 will be.”
Chief operating officer Benes said, “We expect the crisis will last until around 2013, therefore any significant recovery or growth in prices cannot be expected.”
Benes also reiterated that CEZ, which is 69.8% owned by the state, would be able to continue paying out a dividend of around 55% of profit, the midpoint of the company's dividend policy range.
Czech government’s implementation of a 26% tax on solar power revenue from 2011 is aimed at putting a stop to the potential solar boom that threatened to raise power prices on high feed-in tariffs for solar power. Adding to this, traditional electricity producers also face another new tax of 32% on the value of carbon emissions credits granted to them for free in 2011 and 2012.