Pražská plynárenská, the gas company serving Prague, will reduce the price of gas from May 1 for both permanent tariffs and one-year fixations below the government’s ceiling of CZK 3 per kWh, including VAT. From the same date, the price for one-year obsessions with electricity will also drop.

The open-ended Standard product will offer gas at CZK 2.904 per kWh. For the fixed tariff, the price per kWh will be CZK 2.75 for gas and CZK 5.78 for electricity. However, the regulated part of the price and the regular monthly payment must be added.

According to Miroslav Vránek, the company’s spokesperson, an average household using natural gas for cooking, water heating, and heating, with an annual consumption of 11 MWh, will save about CZK 3,000 per year compared to the price ceiling set by the government.

Similarly, the fixed price of electricity from May will save a household in an apartment with a distribution rate of D02 and an annual consumption of 2.8 MWh about CZK 760 compared to the ceiling of CZK 6 per kWh, including VAT. The company will publish the new price lists on its website.

Other major suppliers have also recently announced that they will reduce their prices for higher consumption by thousands of crowns yearly. E.ON and Innogy are offering lower prices for both fixed and open-ended contracts. E.ON’s lower energy prices apply from February 15, while from March 1, prices will also fall for those with a one-year fixation. New gas prices apply from the beginning of February.

CEZ, the largest electricity producer in the Czech Republic, has introduced fixed products for electricity and gas for two or three years, under which the price remains at the ceiling this year and decreases in subsequent years. The company claims that households that heat with gas will save 40 percent on the gas price in the third year of the fixation against the ceiling.

These price reductions are a result of the declining prices of natural gas in the European market. The prices of natural gas have fallen by almost a quarter since the beginning of this year due to the mild winter and increased supply from Norway, Russia, and the US. Furthermore, gas storage facilities across Europe are well-stocked, which has resulted in lower demand and prices.

These price reductions come as welcome news for households, particularly those struggling financially due to the pandemic. Lower energy prices mean lower costs for heating, cooking, and other essential activities, providing some relief to people’s budgets. However, it is important to note that these price reductions may only have a minimal impact on low-income households, who spend a higher proportion of their income on energy bills.

Article by Prague Forum