The Czech Republic is once again scaring energy invoices: Increases are holding back the prices of suppliers! Where is the guarantee that it won’t change?

At the ERO’s proposal to increase the price of the so-called regulated part (for households on average 71% for electricity and 39% for gas) will pay extra mostly people with a fixed contract (those for which the price will not change), or those for which the supplier during the year he has already made the commodity cheaper and from the new year the price will not go down. They simply do not lose the increased prices for distribution in the price savings from the supplier. And it can be thousands of crowns a year.

Cannot be relied upon

Economists point out that relying on the falling prices of energy suppliers is not reasonable. “There are many factors that can affect stock prices next year. Just remember the explosion of gas pipelines, the failure of Bohemia Energy or the blackout two years ago,” reminds Lukáš Kovanda, Trinity Bank’s chief economist, and points out that…

“You can’t rely on the fact that now that the price is going down, that it will continue like this. Such a claim is political, but it would not hold up in a professional discussion,” adds Kovanda. It is true that most suppliers have already significantly reduced their price lists. “Compared to last year, the price has dropped dramatically, but it must be noted that she was at astronomical heights,” says Kovanda.

The second factor recorded by the ERO is the so-called renegotiation of clients. For example, the largest electricity supplier ČEZ sale also offered customers with a fixed contract a price reduction.

“For fixed-line customers who currently pay a capped energy price, but they have a fixation on high prices from the time of the biggest energy crisis, we are offering a free transition to our cost-effective stair product with a decreasing price,” said ČEZ spokeswoman Alice Horáková. If such a step they did not, from January the price would increase by 3,000 for customers with the “light, cook” rate, and by up to 14,000 crowns for “heating” customers per year.

Will the proposal change?

ERO came up with a proposal prices in the so-called regulated part. People and companies have to pay it from the New Year and it is the highest price increase in history. The proposal is still to be discussed and should be confirmed by the end of November. According to experts, it will not change significantly. The prices of the regulator will then be valid throughout the year 2024, while the second unregulated component of the price, i.e. that from the supplier, which changes according to developments on the stock market, can both fall and jump up.

New price lists

According to the findings of the Lightning other suppliers also joined CEZ. “We will inform all customers in writing by the end of November on the transfer to the price list below the ceiling,” said the director of sales of electricity and gas for households and retail at epet. PRE chooses a similar strategy.

“We have offered customers with a fixed price above the government cap a better price. Half already have a more favorable contract, half have not yet responded. We will contact them again,” said PRE spokesman Karel Hanzelka. The so-called Innogy also offered the rescue product Restart to customers. Thanks to him, they were able to get out of higher than ceiling prices. 70 percent of customers did, and Innogy is reaching out to more.

There is a minimum of customers above the ceiling

As far as energy suppliers are concerned, fixed prices above the level of the ceiling set by the government (ends on December 31), according to Blesk, already have a minimum number of customers. “There are about 500 collection points, which is a small fraction of our total number of 700,000,” says the PRE spokesperson. Epet has only dozens of fixed contracts above the government ceiling, and from January 1, 2024, all customers will have a reduced price.

The sub-ceiling price list was previously offered by MND, which had about two percent of customers above the level of the government ceiling. CEZ has 1.9 million customers at the ceiling price for electricity and 300,000 for gas. “Of this, 15% of customers are fixed for electricity and 20% for gas,” says spokeswoman Alice Horáková.