Energy Prices to Rise: Why Now is the Time to Fix Rates

As expensive emission allowances and the shutdown of coal-fired power plants continue, energy prices are predicted to surge in the coming period. According to energy analysts, these are the primary factors driving up energy prices. To avoid higher payments, households are currently advised to fix their energy prices, ideally for two years.

The price of electricity and gas have returned to the level seen at the start of the year and are expected to continue rising. The main reason for this is the higher price of emission allowances. As a result, the market anticipates a further increase in energy prices in the year’s second half. The revival of European industry, particularly in Germany, is leading to increased electricity and gas consumption. This is driving up prices of these commodities in the market, even during the off-season period.

Experts now advise fixing prices. They recommend a two-year fixation. According to their data, the average annual savings when changing electricity suppliers is currently five thousand crowns, and in the case of gas, even seven thousand. A two-year fixation is recommended because the heating season is coming, and some coal-fired power plants may be shut down as early as next year.

Analysts do not consider fixed-term contracts very profitable. In the case of non-fixed products, selected suppliers promise to lower prices or have already lowered them. However, with a non-fixed product, the consumer has no price certainty, and these products are usually several hundred crowns more expensive.

In conclusion, households are advised to act quickly to avoid higher payments. Suppliers have purchased when electricity was cheaper and will increase the new price lists as soon as they sell out. Therefore, everyone is advised to look at the current acquisition offers of suppliers.