CEZ reduced fixed energy prices. From the summer, contracts for an indefinite period will also be cheaper

The price for the supply of gas without fixing at ČEZ will drop to 1,479 crowns per megawatt hour (MWh) excluding VAT for households from June 1. The company will then reduce the price of electricity without fixation from the beginning of July at the most common D02 rate to 3,595 crowns per MWh without VAT.

“This step enables us to adjust our purchasing strategy, thanks to which we can quickly translate the drop in wholesale prices into a reduction in price lists for our customers already in the middle of the year,” says CEO of ČEZ Prodej Tomáš Kadlec. According to him, the price change will be automatic, so customers will not have to do anything.

ČEZ is also discounting fixed products, for the third time this year. Since May, the price of electricity with a two-year commitment has decreased to an average of CZK 3,124 per MWh without VAT, and the price of gas has decreased to an average of CZK 1,298 per MWh without VAT. ČEZ will also discount offers with a three-year contract.

Another solution to reduce energy bills

In addition to the price reduction itself, ČEZ Prodej offers households another solution to reduce energy bills. When purchasing photovoltaics with a battery, 21 solar panels are free, and those interested in a heat pump can take advantage of the free installation promotion.

A recent analysis of the consumption of ČEZ Prodej customers showed that almost 90 percent of clients will save thanks to these measures. A third of households that invested in photovoltaics with a battery saw a reduction in electricity consumption in the range of 20-40 percent, which on average corresponded to a reduction in consumption of almost 4 MWh per year. A quarter of households even reduced consumption by more than 40 percent. Over 60 percent of people who replaced electric heating (mostly electric boilers) with a heat pump reduced their consumption by at least 40 percent, according to ČEZ.

Other suppliers also offer more favorable products

Other suppliers have also been gradually reducing their price lists since the beginning of this year. As of this week, the company E.ON has also reduced energy prices, and it is reducing 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 fixing of electricity will thus come to 3,507 CZK per MWh with tax, and for gas to 1,488 CZK per MWh. Prices are slightly lower for two-year commitments.

From May 1, E.ON reduced gas prices also for existing customers without a fixed price. It will be about 150,000 clients. Prices for gas supply fell by 13 to 21 percent compared to the previous price lists.

Innogy, for example, discounted fixed products by hundreds of crowns this year, which confirmed that it is preparing further price adjustments. In April, the company epet also reduced the price of electricity and gas, since March, Pražská plynárenská has reduced the price of gas by 6.1 percent.

On April 24, Centropol introduced the product Monthly with a change for new customers. The offer represents the fixation of the price of the business component for one month, the possible termination of the contract also has a one-month period. According to the company’s representatives, the new product gives customers the opportunity to profit from the current events on the wholesale energy markets without continuous consumption measurement.

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.