14 November 2022


On 11 November, the European Commission approved, under EU State aid rules, a €180 million Czech scheme to support rail and urban public transport operators using electric traction. The measure shall contribute to improving the environmental performance of rail and urban transport, in line with the objectives of the Commission's Sustainable and Smart Mobility Strategy and the European Green Deal.

Czechia notified the Commission of its plans to support operators of (i) rail passenger and freight transport and (ii) urban public transport, which run their vehicles on electric traction. The aim of the measure is to promote (i) transport by electric traction as a greener mode of transport as opposed to diesel-powered vehicles, and (ii) the shift of freight and passenger transport from road to rail and urban transport. Under the scheme, the aid will take the form of an exemption for transport operators from the renewable energy sources fee (‘RES fee'), which is included in the electricity bills of electricity consumers and finances renewables energy generation in Czechia.

Having assessed the measure under EU State aid rules, the Commission found that the scheme is beneficial for the environment and mobility, as well as necessary and appropriate to achieve the objective pursued. Furthermore, the scheme is proportionate and the aid is limited to reducing the competitive disadvantages faced by rail and urban transport using electric traction compared to road transport and diesel traction. On this basis, the Commission approved the Czech scheme under EU State aid rules.

Source: European Commission