Fast Facts
| Trading Licence | Single ERO electricity licence covers wholesale trading and end-customer supply; no wholesale-only licence |
| EU Recognition | EU/EEA-licensed traders may apply to ERO for recognition of an existing supply licence |
| Registration Deadlines | 3 to 6 months overall (Commercial Register within 90 days of licence issuance; OTE within 30 days before wholesale trading) |
| BRP Onboarding | BRP status onboarded jointly through ČEPS and OTE with financial security |
| Market Scale | Generation around 70 TWh; net exports around 7.5 TWh |
| Licence Fee | CZK 100,000 (approximately EUR 4,000) |
Czech Republic Power Market Fundamentals
Generation and supply in the Czech power market are competitive, while transmission and distribution remain regulated natural monopolies.
Total generation stands around 70 TWh, led by nuclear at around 42% and lignite at around 32%. Solar has overtaken gas-fired generation, at around 7% compared with around 5%
The Czech Republic is a net electricity exporter, with net exports of around 7.5 TWh mainly to Austria and Slovakia, while importing chiefly from Germany and Poland during low-generation or peak-demand periods.
ČEPS operates within ENTSO-E and the Core Capacity Calculation Region, with strong cross-border links to Germany, Poland, Austria and Slovakia.
The NECP targets over 30% renewables in gross final consumption, a full coal phase-out by 2033, and a 55% cut in greenhouse gas emissions versus 1990 levels.
When Is a Licence Required in Czech Republic's Power Market?
ERO is the independent regulator for electricity, gas and heat, responsible for licensing, tariff-setting, market monitoring and enforcement.
A single ERO electricity supply licence is required. There is no wholesale-only licence: the same licence covers wholesale trading and end-customer supply.
The licence is valid for five years and is renewable; renewal must be filed six months, and no later than 90 days, before expiry.
Unlike some markets, there is no requirement to notify ERO of electricity supply or cross-border trading agreements, regardless of duration or value.
Applicants file either a full ERO application or, if already EU/EEA-licensed, an application for recognition of an existing supply licence. Licence holders not yet in the Commercial Register must register within 90 days of licence issuance, or the licence ceases to exist.
What Are Czech Republic's Power Market Licence Requirements for EU and Non-EU Entities?
EU and EEA traders: may apply for recognition of an existing supply licence instead of a domestic licence application. Passporting is not automatic and requires an ERO application.
Non-EU traders: cannot use the recognition route above, since it is only available to EU/EEA-licensed entities. They must instead obtain a full ERO licence, which requires first establishing a local branch or subsidiary.
Both EU and non-EU traders: must complete OTE registration within 30 days of licence or recognition, and before wholesale trading begins.
Balancing in the Czech Republic Power Market
ČEPS is the Czech electricity TSO and is responsible for real-time system balancing. OTE administers imbalance settlement, short-term electricity markets and Balance Responsible Party registration.
Any entity trading power must assume financial responsibility for imbalances through BRP status, onboarded jointly through ČEPS and OTE.
ČEPS uses FCR, aFRR and mFRR. About 90% of balancing capacity is secured through long-term tendered contracts, with the remaining 10% through the Balancing Day-Ahead Market.
The Czech TSO also participates in IGCC for cross-border imbalance netting.
Transmission Capacity in the Czech Republic Power Market
ČEPS is the sole TSO, operating roughly 4,188 km of 400 kV lines and 1,687 km of 220 kV lines across 45 substations, fully integrated into ENTSO-E.
Cross-border capacity is auctioned under EU rules (Regulation 2016/1719 and Regulation 2019/943) and implemented through the ČEPS Grid Code III.
BRP onboarding requires confirming eligibility, submitting the registration form and financial security to OTE, obtaining CS OTE access credentials and executing the OTE agreement. CS OTE access activates no later than the first day of the month following the agreement's effective date.
Czech Republic Power Market Exchange(s)
OTE runs Czech day-ahead and intraday markets, with SDAC and SIDC integration. Trades settle in EUR with a minimum volume of 0.1 MWh, and 15-minute product trading has been fully live since October 2025.
PXE, now Power Exchange Central Europe, provides derivatives trading on EEX's T7 platform under EEX rules. Physical spot delivery can be accessed through the PXE/OTE joint day-ahead market, operated by OTE and cleared in EUR through ECC.
EEX requires trading-member admission and ECC clearing arrangements and offers standardised power futures referencing European delivery zones across base and peak load, with maturities from day to year.
5 Market Entry Steps for Czech Republic Power Market
- 01Apply to ERO for an electricity licence or recognition of an existing EU/EEA supply licence.
- 02Complete Commercial Register registration within 90 days of licence issuance.
- 03Register with OTE within 30 days of licence award and before trading.
- 04Register as a BRP through ČEPS/OTE onboarding and obtain CS OTE access.
- 05Onboard with PXE/EEX if trading exchange products.
- Post-Market Entry Reporting Obligations.
CorreggioNET, Czech Republic Power Market Access Report
Market Access Reports: CorreggioNET offers Pre-Market Entry Reports (PMER) as part of the PMER Library, providing firms with an A-to-Z guide for market entry.
CorreggioNET Alert Service: Helps you never miss a reporting obligation. Note that the Czech Republic has multiple power market reporting obligations, with a complex and evolving regulatory landscape. The Alert Service ensures you never miss a deadline.
CorreggioNET Hotline: For your time-sensitive queries, the Regulatory Hotline Service provides direct support through an online interaction with a qualified regulatory specialist.
Consulting Solutions: For those firms which require additional assistance, Correggio Consulting is on hand to assist with all your licensing needs:
- Market entry & licensing in the Czech Republic;
- ERO licensing & OTE registration;
- ČEPS/BRP onboarding;
- PXE/EEX exchange onboarding;
- Corporate structuring;
- EFET contract negotiation;
- Yearly compliance audits.
Market Info
Stay Compliant After Market Entry
Entering a new market is only the beginning.
Once trading activity starts, the real challenge is staying compliant with ongoing regulatory updates and reporting obligations. CorreggioNET supports this post-market entry stage through its regulatory platform and monitoring services.
See platform services