Energy bills for over a million households in the Czech Republic will drop by thousands of crowns annually as large energy suppliers, E.ON, Innogy, and MND, announce a decrease in prices. The new prices are below the price cap set by the government, with gas prices reduced by CZK 3 per kWh and electricity prices by CZK 6 per kWh, including VAT. However, the regulated part and fixed monthly payments will still be added to this to get the final payment.

E.ON and Innogy are now offering their current customers lower prices for open-ended contracts, affecting over a million and 300,000 customers, respectively. E.ON will apply the lower gas and electricity prices from February 15, and will also reduce customer costs on tariffs fixed for one year from March 1. Innogy’s new gas prices will apply retroactively from February.

MND has also announced a new price list with electricity and gas below the price cap, with one kWh of electricity costing CZK 5.93 and one kWh of gas costing CZK 2.72. New customers can avail it now, while existing customers can do so starting April 1. The company has informed its customers that gas prices will be capped for the rest of this year, but will significantly decrease from January 1, 2024, to March 31, 2025.

On the other hand, ČEZ has introduced fixed products for electricity and gas for two or three years, where the price remains at the ceiling level this year and will gradually decrease only in the following years. The company claims that households that heat with gas will save 40% on gas prices in the third year of the fixation compared to the ceiling.

The people affected by the price reduction do not have to change the advance payment amount themselves, as the supplier will do it for them. Depending on consumption, people will save up to several thousand crowns annually with the new price lists compared to the capped prices. However, they will still pay several times more than a few years ago, despite the price drop in the new price lists.

In conclusion, the recent price reductions in energy bills for over a million households in the Czech Republic by large energy suppliers are a welcome relief. While the savings will vary according to consumption, people can expect to save several thousand crowns annually. However, it is still a far cry from the prices a few years ago, and it remains to be seen whether the energy suppliers will continue to offer competitive prices in the future.

Article by Prague Forum