Big Energy Price Drops in Czech Republic

Energy prices are finally starting to significantly drop, with E.ON now offering new electricity and gas tariffs well below the government’s cap and those of its larger competitors. Families with higher gas consumption could save tens of thousands of crowns per year compared to the competition. Jiří Gavor, an analyst at the company ENA, said: “This is further evidence of how nicely the gas market is reviving. Such an offer represents a significant reduction. It is an offer that will shake up many customers to start thinking about changing their supplier.”

The new product “Electricity online PRO” with a one-year fixation offers E.ON a common distribution rate of 4.51 CZK per kilowatt-hour of electricity. The total price including the regulated portion and tax is 6.63 CZK. Currently, none of the larger competitors offer a price below 7 CZK. In total, households will save thousands per year.

The company made an even bigger reduction in the price of natural gas, with the price per kilowatt-hour at less than two crowns for higher consumption. Families with large consumption, because they use gas for cooking and heating, could save tens of thousands of crowns. Gavor said this would move the market in favour of consumers, as E.ON’s competitors will have to react to the price cuts.

According to the newspaper Právo, which compared current price lists of major suppliers in the largest distribution areas, a saving of about 1,800 CZK can be made at E.ON with an annual consumption of 1,000 kWh of electricity compared to the price cap. For a consumption of 2,000 kWh, the price is already more than 3,000 CZK lower per year, and for a family house with consumption of 3,000 kWh, people will save almost 5,000 CZK compared to the price cap.

The biggest savings are with large gas consumption households. Those using gas for cooking, water heating, and heating, with an annual consumption of 3,000 cubic meters, would pay E.ON slightly over 60,000 CZK, while the most expensive competition would cost more than 40,000 CZK more.

This price cut is expected to cause market disruption as customers will start to think about changing their energy provider to take advantage of the savings. According to Gavor, E.ON’s competitors will have to react to the price cuts sooner or later. This will lead to increased competition, and ultimately, lower energy prices for consumers.

The decrease in energy prices is significant for consumers as it will help reduce their overall expenses. For some households, this could mean the difference between making ends meet and being able to save for the future. It is also a good sign that energy markets are becoming more competitive, which could lead to further price reductions in the future.