Czechia

Criteria of EU definition reflected in national definition

CECs

• Voluntary participation is covered, but openness not explicitly
• Effective control and autonomy are covered

RECs

• Voluntary participation is covered, but openness not explicitly
• Effective control and autonomy are covered
• Geographical proximity is covered

Level of detail in the elaboration of principles contained in EU criteria

CECs

• Effective control and autonomy: voting rights belong only to members who are natural persons, small businesses, municipalities and regions or voluntary associations of municipalities or other contributory organizations of territorial self-governing units, and no one other than these members may directly or indirectly exercise otherwise decisive influence. The highest body of the community, which has the form of an association, is the members' meeting. A member of the community with voting rights cannot exercise voting rights on the highest body with votes exceeding 10% of all votes in the community. When assessing the ability of the highest body of the community to reach a resolution and when adopting a resolution, votes with which a member of the community cannot exercise the right to vote are not taken into account.
• Voluntary participation: it is possible to terminate membership by unilateral legal act against the CEC, at any time and free of charge.

RECs

• Voluntary participation: it is possible to terminate membership by unilateral legal act against the REC, at any time and free of charge.
• Eligibility: members are only natural persons, small or medium-sized enterprises, territorial self-governing units or voluntary associations of municipalities or other contributory organizations of territorial self-governing units.
• Requirement of proximity and effective control: voting rights belong only to members who are located in the vicinity of energy facilities operated by the legal entity, and no one other than these members may directly or indirectly otherwise exercise decisive influence in it. The founding legal documents of the community for renewable sources also contain the delimitation of the territory on which the community for renewable sources is to produce electricity from renewable energy sources and which is legally significant for determining the member's position in the vicinity of energy facilities. This territory can include the contiguous territory of the administrative districts of no more than 3 municipalities with extended jurisdiction or the territory of the capital city of Prague. A member in the vicinity of energy facilities means a member who has a residence or a registered office or a place of business in the territory defined in the founding legal proceedings mentioned before.
• Autonomy: The highest body of the community, which has the form of an association, is the members' meeting. A member of the community with voting rights cannot exercise voting rights on the highest body with votes exceeding 10% of all votes in the community. When assessing the ability of the highest body of the community to reach a resolution and when adopting a resolution, votes with which a member of the community cannot exercise the right to vote are not taken into account.

Further it is stated that the association is obliged to keep a list of members, which also contains the following information:

a) first and last name, name or business name of the member, place of residence or registered office and date of birth in the case of a natural person, registered office of a legal person and identification number, if assigned,

b) type of membership,

c) the number of votes of a member with voting rights,

d) for members of the CEC with voting rights, information on whether the member is a natural person, a small business, a territorial self-governing unit, a voluntary union of municipalities or another contributory organization of a territorial self-governing unit that is not a business,

e) for members of the REC, information on whether the member is a natural person, a small or medium-sized enterprise, a territorial self-governing unit, a voluntary association of municipalities or another contributory organization of a territorial self-governing unit that is not a business,

f) for members of the REC in the vicinity of energy facilities, the address of residence or seat or place of business in the territory defined in the founding legal documents.

The membership of members of the community with voting rights has the same content, unless different types of membership of members of the community with voting rights are determined in the founding legal act depending on the different type of needs of the members provided by the community or if there is another just reason. This applies similarly to the determination of the membership content of community members without voting rights.

Clearly defined purpose

The main purpose of energy communities is to provide environmental, economic or social benefits to its members or in the territory in which it operates. In addition, it is stated that the founding legal act of the community also contains a definition of the purpose of the community. Specifically, on the profits, the law makes a distinction between the cooperative legal form and other legal forms. If the community is in the form of a cooperative or other similar business corporation, it may, if permitted by the founding legal act, distribute a maximum of 33% of the profit and other own resources only among its members,

a) if it does not jeopardize the fulfillment of the purpose of the community and the provision of the needs of community members,

b) if it creates a fund from profits in the amount of at least 30% of the share capital, which cannot be distributed among the members.

If the community has the form of an association or other similar corporation that is not a commercial corporation, the distribution of profit or other own resources is prohibited.

ICA cooperative governance principles reflected

Yes, through reference to the principles included in the EU definition. In the cases that the legal form of cooperatives is chosen, the ICA principles will be naturally integrated according to how they are implemented under Czech legislation.

Legal entities allowed

Energy communities can undertake the legal form of associations, cooperatives or other corporations. If the community chooses to take the form of some other corporation (than association or cooperative), it's internal relations must be defined in the founding legal act in such a way, so that they are substantially similar in content and purpose to the internal relations of an association or cooperative.

Activities

CECs can engage in the production of electricity, the sharing of electricity, the supply of electricity or the performance of other activities or the provision of other services related to ensuring the energy needs of its members.

In more detail, they are authorized to:

a) take electricity at the take-off point for own consumption,

b) generate electricity,

c) supply electricity produced in an electricity production plant operated by the community,

d) share the electricity produced in the electricity production plant operated by the community to the transfer point of the member of the community.

If the CEC operates an electricity production plant with an output of up to 50 kW at the point of consumption without an electricity production license, it is authorized to supply electricity from this electricity production plant only to an electricity trader.

RECs can engage in the production of electricity or other forms of energy from renewable energy sources, the supply of electricity, the sharing of electricity or the performance of other activities or the provision of other services related to ensuring the energy needs of its members. RECs have the right to produce electricity from renewable sources outside the territory, only in electricity production plants whose total installed capacity does not exceed one third of the total installed capacity of all electricity production plants operated by it.

Citizen participation is ensured

Not specifically addressed.

Designated authority to oversee

The law sets a specific system for energy communities to register in a public registry operated by the Energy Regulatory Office, which is maintained in electronic form. The law states the necessary content of the application and the process to be followed by the Energy Regulatory Office, which decides whether it will register an energy community or not. The Energy Regulatory Office also decides on the deletion of a community from the register of communities and publishes data entered in the community register on its website.

Each community is obliged to immediately notify the Energy Regulatory Office of a change in the data entered in the community register. In addition, the law highlights that a legal entity whose name contains the designation "energy community" or "community for renewable resources" without becoming a community within 6 months from the date of entry into force of the Energy Act is obliged to change its name within 9 months from the date of entry into force of the Act so that not to contain such a label.

Number of definitions

2 – energy communities (CECs) and communities for renewable sources (RECs).

Coherency between both definitions

The law highlights that the term communities fits both CECs and RECs, therefore tries to introduce some coherency in the concept of energy communities. More specifically, the law mentions that the name of a CEC may include the designation "energy community" and the name of a REC may include the designation "community for renewable resources". A non-community may not use the designations "energy community" and "renewable resources community". The law goes a step further and regulates that a legal entity or a natural person running a business commits an offense by using the designation energy community or community for renewable resources, if the legal provisions defining energy communities are not met. A fine may be imposed for such an offense.