The Czech government will unveil plans next week to create a state energy trader to buy energy for schools, hospitals and other public institutions ahead of winter due to soaring prices, Industry Minister Jozef Sikela said on Sunday, Reuters reported.

He did not say how long it would take to set up a government trader, but said he would be ready to buy energy for government agencies by the new year.

I will start an agency very quickly, and the first task of this agency will be to buy energy for the public sector," he said during a discussion on a television news program. "On Wednesday, I will inform the government about the steps we have prepared and we will choose one of the options, which we will then formalize. I prefer the fastest option, namely the establishment of an agency."

Sikela also said that he has approved applications from the Czech investment group EPH and Sev.en Energy for loans to cover margin requirements.

In July, the Czech government said it would help state-owned CEZ finance electricity and gas trading ahead of the winter peak demand season through a loan agreement worth up to 3 billion euros.

However, Sikela did not specify the amount of aid for EPH and Sev.en, which are owned by Daniel Kretinsky and Pavel Tykac respectively.

Electricity prices in Europe are already setting new records almost daily, and last month, for the first time in Germany, the base contract exceeded 1,000 euros per megawatt hour, prompting governments to take measures to protect households and businesses.