ČEZ Announces Significant Reduction in Electricity and Gas Tariffs

The Czech Republic’s leading energy supplier, ČEZ, has announced a reduction in its tariffs, updating the price lists for electricity and gas with a fixed term of one to three years from 15th May. The average decrease for electricity is 350 CZK per megawatt-hour (MWh), and for gas, it is 300 CZK/MWh. Other suppliers have also recently announced similar price cuts.

ČEZ’s products with a fixed term are set up so that the longer the contract period, the lower the price. With the new updates, customers will now pay 510 CZK/MWh less in the first year of the contract than the government-set ceiling of 5,000 CZK without VAT for electricity and 2,500 CZK without VAT for gas.

The CEO of ČEZ Prodej, Tomáš Kadlec, stated, “We still have over 1.3 million customers on previous fixed terms, and many of them will end soon. We want to offer them affordable products at an excellent price. We offer a one-year fixed term for customers who do not want to commit for a long time. We offer a two- or three-year fixed term for those who want long-term security.”

If a consumer has a three-year contract with a supplier, in the final year, they will pay 3,970 CZK/MWh for electricity in the distribution rate D02, while gas will pay 1,500 CZK/MWh in the “Topím” rate. The third-year gas rate has not changed, as ČEZ already offers this rate for the third year of the gas price list. However, other fees, such as VAT (21%), a fixed monthly payment, or distribution charges, must be added to the prices.

In addition to the tariff reduction, ČEZ Prodej plans to update its price lists regularly if wholesale prices continue to fall. The wholesale energy market prices have been decreasing for several months, which led to several price cuts by energy suppliers in recent weeks and months. Furthermore, all significant energy suppliers have been offering rates below the government-set ceiling. They also add that they are willing to continue reducing prices if the situation on the wholesale market supports it.

Other energy suppliers have also recently updated their prices. MND now offers gas without a fixed term for 2,289 CZK/MWh with VAT and electricity without a set time for 5,190 CZK/MWh with VAT from this week.

The reductions in energy tariffs are a welcome relief for consumers experiencing high energy bills for some time. These cuts will likely provide some relief to households and businesses struggling to manage their energy expenses during the ongoing economic uncertainties.