E.ON Cuts Gas Prices for Unfixed Customers

Energy provider E.ON will reduce gas prices for its existing customers without fixed contracts by 16% starting September 1. The company announced in a press release on Thursday that this price decrease will make the cost a quarter lower compared to the government-imposed cap. This reduction will apply to approximately 140,000 clients. E.ON is also considering lowering electricity prices.

“We are lowering the price before the start of the heating season when gas consumption significantly increases. This way, the reduction will have a more pronounced effect on customers’ bills,” stated Jan Zápotočný, Vice Chairman of the Board of E.ON Energie.

“As a stable and fair energy supplier, we strive to protect our customers in the long term and only partially pass on the negative impacts of the market to them,” he added.

Customers with average consumption will pay 2,321 CZK with VAT (1,918 CZK without VAT) per delivered megawatt-hour (MWh) of gas starting from September.

“Compared to our current prices, customers will save 436 CZK per MWh of delivered gas, and compared to the still valid price ceilings, the savings will be 704 CZK per MWh. Thus, the gas prices will be approximately 25% below the price ceiling and among the most advantageous in the market,” E.ON stated in the release.

For example, a household that uses gas for heating and has an annual consumption of 15 MWh will save over 6,500 CZK annually.

“We are considering reducing electricity prices for our existing customers as well. We will take this step as soon as the market situation allows us to,” added Zápotočný.

The supplier will also recalculate customers’ current deposits and send them a new breakdown, if it is possible, based on their consumption.

Addressing Further Clients, E.ON also plans to approach customers with long-term commitments to the company. Currently, this concerns several thousand clients.

“We will actively reach out to them with a new offer during the autumn. It will be a two-year fixed product, more than 20% below the current price ceiling for electricity and more than 30% below gas. This is the same product we offer to other customers who want to fix their price,” added Fišer.

E.ON is reducing gas prices for the second time this year; the company began offering prices below government-set ceilings for gas and electricity in February.

In the early months of the year, prices below government price ceilings were lowered by E.ON, Innogy, Centropol, Prague Gas Works, and other suppliers.

ČEZ also offers a new fixed product with gradually decreasing prices from spring. Companies like Prague Energy, Innogy, and MND have recently presented new offers.

According to analysts, consumer energy prices will likely continue to decrease in the coming weeks.

The current fluctuations in the wholesale market are not expected to have a significant impact yet. Major suppliers base their prices on the long-term market trend, which has been favorable since the beginning of the year, as analysts recently stated for ČTK.