1. www.cgoa.czEFG 2007 12.-13.9.2007 Energy savings in the new EU Member States: The Czech experience Miloš KEBRDLE Secretary General CZECH GAS ASSOCIATION E-mail: m.kebrdle@cgoa.czm.kebrdle@cgoa.cz

2. www.cgoa.czEFG 2007 12.-13.9.2007 - 2 - Economic changes in the energy sector between 1990 and 2007 1990 – 1993Phase One – changes started  Transition of the country’s economy to a market economy  The country’s currency, CZK, became freely convertible  Partial deregulation of prices  1993: Czechoslovak federation split to form the Czech Republic and Slovak Republic

3. www.cgoa.czEFG 2007 12.-13.9.2007 - 3 - Economic changes in the energy sector between 1990 and 2007 1994 – 2002Phase Two – changes carried out  Public limited companies emerged in the gas industry  Governmental subsidies to support capital investment projects for bringing natural gas to municipalities  Energy prices gradually rising  Full application of market economy principles in the gas industry  Elimination of cross subsidies (household prices subsidised at the expense of prices to the industrial and commercial sectors)  Privatisation of gas companies started (1995) and completed (2002)  Legislative changes – a new Energy Act, harmonisation of legislation with the EU’s acquis

4. www.cgoa.czEFG 2007 12.-13.9.2007 - 4 - Economic changes in the energy sector between 1990 and 2007 2003 - 2007Phase Three – changes stabilised  Full application of the EU legislation in the energy sector, accession to the EU  Fully-fledged operation of the Energy Regulatory Office  Preparations for, and opening of, a liberalised gas market  Economic relationships in the gas industry are fully comparable with those in the other EU Member States

5. www.cgoa.czEFG 2007 12.-13.9.2007 - 5 - Energy Balance

6. www.cgoa.czEFG 2007 12.-13.9.2007 - 6 - Fuel transformation

7. www.cgoa.czEFG 2007 12.-13.9.2007 - 7 - Development of the GDP 0.0 500.0 1 000.0 1 500.0 2 000.0 2 500.0 3 000.0 3 500.0 199419951996199719981999200020012002200320042005 CZKbn 98.0 100.0 102.0 104.0 106.0 108.0 110.0 112.0 % GDP (current prices)GDP (constant prices, previous year = 100)

8. www.cgoa.czEFG 2007 12.-13.9.2007 - 8 - Energy intensity of GDP creation 0 0.2 0.4 0.6 0.8 1 1.2 1.4 19951996199719981999200020012002200320042005 PJ fuels and energy/CZKbn GDP

9. www.cgoa.czEFG 2007 12.-13.9.2007 - 9 - Reducing the energy intensity of GDP creation  Gas price hikes have resulted in a more economical behaviour of consumers in all sectors of the economy  Technological changes in industry in favour of less energy intensive processes  Change in households’ behaviour  Investments in energy savings have become more effective  Preference for energies with a higher efficiency of energy transformation (the share of gas has grown, the share of solid fuels has decreased)

10. www.cgoa.czEFG 2007 12.-13.9.2007 - 10 - Energy intensity – the energy sector 9.4 9.5 9.6 9.7 9.8 9.9 10 19941995199619971998199920002001200220032004 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 Electricity using steam from fuels [GJ/MWh] Hard coal, run-of-mine output [GJ/tonne] Heat from heat & power plants [GJ/GJ] Oil production [GJ/tonne]

11. www.cgoa.czEFG 2007 12.-13.9.2007 - 11 - Energy intensity – the chemical industry 0 10 20 30 40 50 60 70 19941995199619971998199920002001200220032004 GJ/t ammoniaethylene polyethylene and copolymers polystyrene and copolymers

12. www.cgoa.czEFG 2007 12.-13.9.2007 - 12 - Energy intensity – the food industry 0 3 6 9 12 15 19941995199619971998199920002001200220032004 GJ/unit malt refined sugar meat products beer

13. www.cgoa.czEFG 2007 12.-13.9.2007 - 13 - Fuel consumption – heat production 19952004 Total consumption: 78,803 TJ Total consumption: 50,510 TJ solid fuels 70.5% liquid fuels 10.2% gaseous fuels 19.3% solid fuels 64.5% liquid fuels 5.7% gaseous fuels 29.8%

14. www.cgoa.czEFG 2007 12.-13.9.2007 - 14 - Pattern of fuels – the food industry liquid fuels 20.3% solid fuels 11.1% gaseous fuels 48.9% electricity 19.7% liquid fuels 16.5% solid fuels 29.7% gaseous fuels 39.9% electricity 14.0% 1995 2004 Total consumption: 36,407 TJ Total consumption: 28,595 TJ

15. www.cgoa.czEFG 2007 12.-13.9.2007 - 15 - Pattern of fuels – the chemical industry 19952004 Total consumption: 38,768 TJ Total consumption: 76,566 TJ liquid fuels 6.9% solid fuels 48.1% gaseous fuels 27.1% electricity 17.9% liquid fuels 10.9% solid fuels 49.2% gaseous fuels 21.7% electricity 18.2%

16. www.cgoa.czEFG 2007 12.-13.9.2007 - 16 - Changes in the household sector between 1995 and 2005  Gas price up by 230%  Investments in heat loss reduction in residential buildings  Indoor temperature of heated space lower by approximately 3°C  Better availability of more efficient appliances  Space not occupied permanently no longer heated to the usual temperature (only heated to the necessary minimum)  Gas consumption in a standard (average) household (detached house) decreased annually by about 2.5% from 1995 to 2005

17. www.cgoa.czEFG 2007 12.-13.9.2007 - 17 - Number of STP’s customers taking up to 250 cu m/year

18. www.cgoa.czEFG 2007 12.-13.9.2007 - 18 - Number of STP’s customers taking 500 to 6,500 cu m/year

19. www.cgoa.czEFG 2007 12.-13.9.2007 - 19 - Household category’s consumption at JMP – by bands

20. www.cgoa.czEFG 2007 12.-13.9.2007 - 20 - Households’ average consumption adjusted to average ambient temperature 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 3600 19951996199719981999200020012002200320042005 cu m/yr 0 1 2 3 4 5 6 7 8 9 10 CZK/cu m households‘ average consumption (sample 1) Households‘ average consumption (sample 2) average price for households

21. www.cgoa.czEFG 2007 12.-13.9.2007 - 21 - Boiler sales, households 0 20 000 40 000 60 000 80 000 100 000 120 000 140 000 160 000 19951996199719981999200020012002200320042005 0 2 4 6 8 10 12 14 16 Increase, households Minimum replacement Per cent of heating system replacement %