Major energy providers in the Czech Republic are responding to falling wholesale prices by lowering their tariffs. Leading the way, the energy company ČEZ announced on Monday a noticeable reduction in prices for its electricity and gas products with two- or three-year fixed-rate contracts.
ČEZ customers who heat with gas can now take advantage of new multi-year fixed-rate offers under particularly favourable conditions. With a two-year price guarantee, new customers will save around 25 percent compared to last year. An average household with an annual consumption of 10 megawatt-hours can therefore save over 3,900 crowns per year.
The three-year fixation is even more attractive. Compared to the last available three-year fixed-rate offer from 2024, the saving amounts to around 40 percent. For households with average gas heating and an annual consumption of 10 megawatt-hours, this represents a saving of up to 9,000 crowns per year.
In addition to the new gas prices, ČEZ Prodej is also lowering the price of its electricity product “Elektřina v akci”. The tariff is now around 330 crowns per megawatt-hour cheaper than last year – a price reduction of more than eleven percent.
Greater potential in flexible tariffs
According to market analysts, the scope for further reductions in fixed-rate products will remain limited. They see significantly greater potential in tariffs without a fixed term – that is, contracts that customers can cancel at any time. Adjustments in this area are also being planned by Pražská energetika (PRE). The provider E.ON had already lowered its prices in September.
“From 1 November, we are reducing electricity prices by ten percent and gas prices by eight percent,” said Pavel Elis, General Director of the Prague-based energy supplier Pražská energetika, speaking to the news channel ČT24.
An additional factor that could help reduce electricity costs may also come from politics. Karel Havlíček, the designated Minister of Industry and Trade (ANO), told Czech Television (ČT24) that the new government plans to lower energy prices. While this would reduce end-user prices, it would also place a greater burden on the state budget.
Wholesale prices have fallen sharply
The price cuts for individual customers reflect developments on the wholesale market. A megawatt-hour of electricity currently costs around 96 euros – during the energy crisis, the price temporarily reached 984 euros, more than ten times as much. Gas prices have also fallen significantly: traders are currently paying about 32 euros per megawatt-hour, likewise only a tenth of the price three years ago.
