In a positive development for households in the Czech Republic, electricity and gas prices have continued to decrease, enabling consumers to save over ten thousand korunas annually. Major energy suppliers, including ČEZ, MND, Pražská plynárenská, and Centropol, have announced significant price reductions in recent weeks, providing customers with more affordable options.

According to Jiří Gavor, an analyst at ENA, the price lists introduced by ČEZ from May 15 signify a substantial improvement. Additionally, many other suppliers have pledged further price reductions for both existing and new customers, ensuring long-term savings. However, most of these reductions are linked to fixed contracts, although they present a valuable opportunity for significant savings.

For example, households that opt for a one-year contract with ČEZ for gas supply could save 15,500 CZK compared to the March offer, considering an annual consumption of 3,000 cubic meters. These price reductions are particularly advantageous for households with higher consumption rates, varying depending on the supplier.

Although the current market prices are already below the government-set ceiling for this year, which is 6 CZK including VAT per kilowatt-hour of electricity and 3 CZK including tax per kWh of gas, it is crucial to factor in the regulated portion of the price. However, the regulated part of the price does not negate the positive impact of these reductions, ensuring that consumers will still experience significant cost savings.

Various energy suppliers are implementing these price reductions. Starting May 29, Centropol will reduce gas prices in their “Bez závazku” (Without Obligation) tariff, offering lower rates for both lower and higher consumption levels. The MND Proud tariff, which has an indefinite duration, has also seen a decrease in prices, benefiting customers with reduced electricity and gas costs.

Currently, Tedom stands as the most affordable electricity supplier, adjusting prices monthly based on market developments. In May, customers in the most commonly used tariff, D02d, within the ČEZ distribution area will pay a total of 6.26 CZK per kilowatt-hour. E.ON follows closely with a price of 6.63 CZK. These prices remain well below the government-set ceiling, providing considerable savings for consumers.

For smaller households with an annual consumption of 1,000 kilowatt-hours, opting for Tedom translates to a yearly payment of 8,800 CZK, inclusive of fixed costs and a fuse fee. Without the government’s price ceiling, the expenditure would increase by almost two thousand korunas. Similarly, for higher consumption levels of 2,000 kWh, Tedom remains the most affordable supplier, with an annual payment of 15,000 CZK. E.ON comes second, albeit six hundred CZK more expensive.

In terms of gas, E.ON offers the most cost-effective option through an annual fixation. Despite a slight increase in one-year focus prices for all consumption levels except the lowest, E.ON still provides the best rates. Customers relying on gas for cooking purposes will pay 4,100 CZK, ensuring substantial savings.

Overall, the recent reductions in electricity and gas prices bring good news for Czech households. These developments will alleviate the financial burden on consumers and create an environment of affordability and choice in the energy market. With lower prices and the potential for further reductions, consumers can look forward to substantial savings on their energy bills, ultimately contributing to their financial well-being.

Article by Prague Forum