Another Czech company collapses in avalanche of energy crisis

Photo: Milan Malíček, Právo

Seven thousand electricity and gas customers of the Český Energetický Dodavatel were hit by unpleasant news the day before Christmas. On Wednesday, the gas company announced that it would cease operations. Information on the website of the Electricity Market Operator (OTE) shows that the company supplied electricity to 4,283 customers and gas to 2,933 customers. According to the firm, high energy prices are responsible for the difficult decision. 

“In the entire time we have been on the market, we have saved our customers considerable amount of electricity and gas supplies. We are very sorry that the situation in the energy market has changed so drastically. The unpredictable and rapid increase in energy prices that we have been experiencing this year has had a critical impact on our company. It is with a heavy heart that we regret to inform you that we are stopping our electricity supply from December 23rd, and also our gas supply from December 26th, “the company announced on its website.”

According to the company statement, the management tried till the last minute to avert the collapse and find a solution, but the end was inevitable.

“Since the spring of this year, we have all witnessed enormous price increases for electricity and gas in the European and Czech markets. We have been able to absorb some of the pressure. We have also tried to use the possibility of an operating loan to overcome this bad period. None of the banks we approached, despite long negotiations and the delivery of all the necessary documents, responded to our requests. This happened in the autumn of this year. At that time, prices were already so high that we had to resort to a necessary increase in advances. This has affected all of you, our customers. It was an unpleasant situation for us as well as for you, because our aim has always been to save our customers money on their electricity and gas bills. However, even after the increase in prepayments, the rise in energy prices on the market didn’t decline. On the contrary, it has almost doubled, “the announcement mentions.

The shutdown of Český Energetický Dodavatel will lead thousands more people to the supplier of last resort (DPI). It will provide electricity to the previous clients of the company, so they will not be left without energy. They will be supplied by the dominant supplier in the region. However, they will have to start looking for a new permanent supplier at a time when gas and energy prices are breaking historical records.

The suppliers of last resort for electricity supply are E.ON Energie (southern parts of the Czech Republic), Pražská energetika (Prague and its surroundings), and ČEZ Prodej (central and northern parts of the Czech Republic). In the case of gas suppliers, they are E.ON Energie (South Bohemia region), Pražská plynárenská (Prague and the surrounding area), and Innogy Energie (the rest of the Czech Republic).

After Bohemia Energy, which supplied energy to about 900,000 clients, Kolibrik Energy, with 28,000 clients, A-PLUS Energie, with 150 customer sites, Ray Energy, which supplied about 3,000 clients, and Microenergy, which supplied energy to more than 760 customers, Český Energetický Dodavatel is the sixth energy or gas company in the Czech Republic during the last 2 months that was forced to go out of business.