ČEZ Prodej, the energy company, has reported a surge in customer demand for fixed energy contracts. After a seven-month pause due to the energy crisis, the company reintroduced two and three-year fixed contracts in March. Recently, one-third of all new electricity contracts and over half of new gas contracts have been for fixed products.
Customers are responding to the current situation, with wholesale prices stabilizing and the upcoming heating season. Additionally, the end of price caps on commercial energy costs has influenced customers’ decisions.
One-year and three-year contracts are most preferred by customers seeking short-term or long-term price certainty.
Tomáš Kadlec, CEO of ČEZ Prodej, stated that the interest in fixed products has been growing, possibly driven by the approaching heating season and the expected expiration of government price caps. Customers are seeking clarity about future prices and monitoring wholesale energy prices, which have ceased to decline and, in some cases, have slightly increased. Many customers opt for three-year fixed contracts with gradually decreasing prices, indicating a preference for long-term stability.
The demand for two-year contracts has also increased significantly. In contrast, fixed contracts represented only a fifth of electricity contracts and a third of gas contracts in May.
ČEZ Prodej had previously halted offering multi-year fixed contracts when energy prices hit historic highs last year. However, the company reintroduced them this spring as prices stabilized and declined. The innovation includes gradually decreasing electricity prices yearly, offering customers more flexibility than fixed rates for the entire contract duration.
Customers with fixed-rate contracts exceeding government caps can now transition to contracts with decreasing prices without penalties. ČEZ Prodej currently has around 160,000 such customers, and the company is proactively reaching out to them via various communication channels to offer new advantageous plans with declining prices.
Similarly, customers with multi-year fixed contracts entered into before the energy crisis are being approached. They can continue with the same fixed rate or select a different product that better suits their needs.
The transition to plans with decreasing prices comes when government price caps, which have been protecting these customers throughout the year, are expected to end soon. Offering customers more excellent choices and flexibility in their energy contracts is becoming a priority in the current market landscape.
All new contracts are now being offered at prices that reflect the current price list.