The politics of energy prices

"ČEZ posted record 2005 results," ran the headlines today. Despite soaring profits, MFD added, ČEZ is raising electricity rates. What's bad for households, though, is good politically for ODS and the Greens. ČEZ is presenting them with one of their strongest possible campaign issues. MP Vlastimil Tlustý of ODS got the ball rolling by suggesting in MFD that ČSSD is allowing ČEZ to abuse its monopoly in exchange for campaign contributions. The Greens, in turn, have a solid anti-ČEZ argument about burning Czech coal to heat German households. Tlustý said that higher electricity prices will be a much bigger election topic than VAT rates. If ODS and the Greens are able to ride the energy issue into a post-election coalition, removing ČEZ's top management would be one of their first logical moves in their new positions of power. Unless, of course, ČEZ buys them off too, so to speak. [Czech Republic MF Dnes Germany value-added tax Green Party Martin Bursík]