Energy price hikes to hit Czech transport companies hard

Published: 22.10.2021 Related countries:  Belgium Belgium

The current situation in the energy market is very unpredictable for all players and the rocketing prices may cause significant costs for Czech companies.

According to the Association of Transport Companies of the Czech Republic (SDP ČR), energy price hikes are a serious problem that could threaten public transport operations in a worst-case scenario, even though some transport companies have set up longer-term contracts with good prices. Given the current energy crisis, there is a risk that suppliers could terminate their contracts. The transport companies are now quantifying how the energy price increase will increase their operating costs. For companies operating tram and trolleybus services or metro services, the main issue now is the purchase of power electricity and gas. Most of them buy these commodities on the stock exchange in the form of staggered payments.

The association informed that the costs of some transport companies will increase by hundreds of millions of CZK. Miloš Havránek, Director General of the Brno City Transport Company (DPMB), said that in the case of DPMB, the increase in the price of diesel, electricity, and gas means an increase in costs by more than CZK 250m in 2022.
Source: https://www.sdp-cr.cz/
Prepared by the team of foreign office CzechTrade Belgium