The price of energy continues to fall. E.ON lowers prices for the third time, other suppliers also respond

Energy company E.ON will reduce its energy prices. As of this week, the company has reduced fixed electricity and gas tariffs for new clients, and from May it will also lower gas prices across the board for about 150,000 customers with a contract without obligation. Prices will drop by hundreds of crowns per megawatt hour (MWh), E.ON reported. Other suppliers are gradually making energy cheaper this year, thus responding to the drop in wholesale energy prices.

E.ON lowers its fixed tariffs for the third time this year. Electricity prices with one-year and two-year fixation for the most common tariffs will drop by CZK 201 per MWh, gas prices by CZK 293 per MWh. The annual fixed price for electricity will thus be CZK 3,507 per MWh including VAT, and for gas it will be CZK 1,488 per MWh. Prices are slightly lower for two-year commitments.

From May 1, E.ON will also discount gas for existing customers without a fixed price. It will be about 150,000 clients. According to the company, gas supply prices will drop by 13 to 21 percent compared to current price lists. The company has not yet announced the exact prices, but against last year’s limits set by the government, the price will be 35 percent lower. At last year’s price ceilings, a megawatt hour of gas cost CZK 3,000.

Other suppliers have also been gradually reducing their price lists since the beginning of this year. For example, at the end of March, ČEZ adjusted price lists with annual fixation, in which they reduced the prices of electricity and gas by several hundred crowns per MWh. This year, the company adjusted other tariffs as well. Innogy, for example, discounted fixed products by hundreds of crowns this year, which recently confirmed that it is planning further price adjustments. In April, the company epet also reduced the price of electricity and gas, and since March, Pražská plynárenská has reduced the price of gas by 6.1 percent. A new product was also presented by the company Centropol, which offers new clients a price fixation for one month with a one-month notice period. For example, Lama Energy now also offers a monthly tariff. Some suppliers are holding off on discounting, among other reasons, because they bought products ahead of time at higher prices.

The reduction in prices is a consequence of the gradual decline in electricity and gas prices on the energy market, especially since the beginning of this year. A megawatt-hour of electricity now costs EUR 88.45 (roughly CZK 2,232) on the stock exchange, which is about 40 percent less year-on-year. Even more significantly, by approximately 50 percent, the price of gas fell to the current 35.7 euros (over 901 CZK) per MWh. Since March, the price of energy has gradually started to rise on the market, but in the last week, prices have again fallen slightly.