Energy Crisis Heaps Pain on Prague's Small Businesses

"The energy crisis affects everyone: we have higher bills to pay and our contractors are forced to raise their prices," said Czech businessman David Bohac, owner of Klubovna, a club and major cultural venue.

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While his business has had to face a number of challenges over the years, most notably the COVID-19 pandemic, today's energy crisis is unique as it could be the beginning of "another rough path." "When people have less money, then their recreation is probably going to be the first thing they cut out of their budget," he said.

On Monday, Eurostat showed that eurozone inflation rose to a historic high of 10.7 percent in October in annual terms. In the Czech Republic, the inflation figures for October are yet to be published, but the 18 percent year-on-year rate for September was already worrying.

Gordon Stone, a Dubliner, has been a regular visitor to Prague since the 1990s and is no stranger to doing business here. He started out in the mapping industry in 1999 before launching Zizkovsiska, an art gallery and pub in Zizkov neighborhood in 2015. He said the energy crisis has introduced a whole new layer of uncertainties.

"The problem is that nobody knows where this crisis will take us," he said, adding that not knowing how much utilities cost for his business is a "bit scary" because utility companies can simply cut his supplies immediately "without any compassion."

"They cut you off and you're out of business. Then still you've got things to pay off and it spirals from there. No matter how much it is, you have to pay it. That's terrifying because I really have no idea what to expect and I'm trying to be as thrifty as possible," he said, noting that the energy crisis is deepening the rich-poor divide in Europe and could lead to social destabilization if left unchecked.

David Rankin, an American, has been living in the Czech Republic for almost 10 years now. In 2016 he launched a visa agency primarily to service the needs of TEFL teachers from English-speaking countries. He's certainly no stranger to tribulations, saying that the energy crisis is hitting his business "in more of a domino effect than anything else."

"Prague is becoming more expensive, rent is going up. However, language schools aren't going to sacrifice their bottom line. So, the poor teachers are stuck in limbo on a fixed income and have to deal with ever-increasing prices," Rankin said, adding that "the more affordable Czechia is, the more people move here" but now "they can't afford to live here."