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Instruction for submitting applications for obtaining a state license for energy trading in the Czech Republic

Published: August 3, 2024
In the Czech Republic, energy trading is regulated by the Energy Law No. 458/2000 Coll. (Zákon č. 458/2000 Sb., hereinafter referred to as the Law). An important addition to the Law is the Instruction for submitting applications for obtaining a state license for energy trading, designed to ensure a clear and transparent licensing procedure.

Main objectives of the document:
  • To ensure that all applicants comply with legislative requirements, which contributes to improving the quality and reliability of energy supply.
  • To ensure transparency of the activities of companies in the energy trading sector through the collection and verification of data about them, thus building consumer trust.
  • To create conditions for the protection of the rights and interests of energy consumers by establishing high standards for licensed companies and monitoring compliance with these standards.

The document provides equal conditions for all participants in the energy supply market through clearly defined rules and requirements, promoting the development of fair competition and improving operational efficiency.

How to submit an application

To apply for a license, the applicant must fill out a standard form. This can be done in written or electronic form. A written application must contain the applicant’s personal signature, and an electronic application must be certified with an electronic signature.

    According to the instruction, the maximum validity period of licenses is:
  • for gas trading – 5 years;
  • for the production of gas and thermal energy – 25 years;
  • for gas transmission, electricity distribution, gas distribution, gas storage, thermal energy distribution, market operator services – indefinitely.

List and amounts of fees
    The document establishes a list and amounts of fees that the applicant may be required to pay:
  • Granting of a license:
    • for the production of electrical, gas, and thermal energy up to an installed capacity of 1 MW inclusive – 1,000 Czech crowns;
    • for the distribution of electrical, gas, and thermal energy up to a transport capacity of 1 MW inclusive – 1,000 crowns;
    • for the transmission of electricity, transportation and storage of gas – 10,000 crowns;
    • for the production of electrical, gas, and thermal energy with an installed capacity of more than 1 MW – 10,000 crowns;
    • for the distribution of electrical, gas, and thermal energy with a transport capacity of more than 1 MW – 10,000 crowns;
    • for electricity and gas trading – 100,000 crowns.
  • Amendment of the license – 1,000 crowns.
  • Revocation of the license – 500 crowns.
  • Recognition of professional qualifications – 2,000 crowns.
  • Issuance of a duplicate license – 500 crowns.
  • Issuance of a copy of the license – 50 crowns/page.
  • Copying of the license on a copier – 15 crowns for the first page and 5 crowns for each subsequent one.
  • Copying of the license from an electronic medium – 40 crowns.

General requirements for the applicant / his responsible representative

The applicant or his responsible representative must be an adult (18 years old). Both the applicant and his responsible representative must be capable and possess professional competence.

What is included in professional competence?
    Professional competence implies that the applicant / his responsible representative has one of two types of training:
  • a full higher engineering education with at least 3 years of experience in the field;
  • a full secondary technical education in an engineering specialty with at least 6 years of experience in the field and a general certificate of secondary education.

An applicant planning to obtain a license for the production of electrical or thermal energy with a capacity of up to 1 MW must have professional training in the industry with at least 3 years of experience. The same requirement applies to obtaining a license for the installation of thermal or electrical distribution equipment with a capacity of up to 1 MW.

An alternative to professional training and 3 years of experience can be a retraining certificate for work at small power generation stations.

Ways to confirm professional competence
    Documents confirming the professional competence of the applicant or his responsible representative (each copy must be notarized):
  • Diploma of higher education.
  • Certificate of professional secondary technical education.
  • Work book.
  • Recommendation letter from a previous employer.

A business owner can confirm their own competence with a certificate issued by the Trade License Registry or a tax declaration.

In which cases is it not necessary to confirm professional competence?

For the production of electricity from renewable sources with a capacity of up to 20 kW, the professional competence of the applicant or his responsible representative does not need to be confirmed.

Requirements for the financial solvency of the applicant

Financial solvency is considered as the ability of the applicant, wishing to obtain a license, to independently finance his activity for at least 5 years.

    The applicant must not have debts for:
  • taxes;
  • fines;
  • customs duties;
  • social security contributions;
  • medical insurance contributions, etc.

The applicant may be denied a license if he has been declared insolvent (bankrupt) by a court in the last 3 years.

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