Czech households relying on gas for heating, cooking, and hot water are in for a shock come January. The Energy Regulatory Office has proposed changes to the regulated component of gas prices, potentially increasing annual bills by up to 2,000 crowns (approximately $90) for some consumers.
The impact will be most significant for high-consumption households. For instance, a typical family home in Prague or South Bohemia using 3,000 cubic meters annually could see their yearly expenses rise by over 2,000 crowns. In other regions served by GasNet, the increase is expected to be about half that amount.
The price hike is attributed to increased distribution fees and fixed monthly charges, with an 8-15% rise anticipated for both components. Lower consumption households will experience a milder increase. For example, a family using gas only for cooking and water heating (about 1,800 cubic meters per year) can expect an additional 1,500 crowns annually, or half that in GasNet distribution areas.
Energy analyst Tomáš Vrňák from Ušetřeno.cz confirms that both the distribution component and the supplier’s fixed fee will increase, outpacing inflation. On average, households can expect to pay about 400 crowns more per year.
The surge in prices is partly due to the cessation of gas transit through the Czech Republic to other countries, while the cost of maintaining the infrastructure remains. As Michal Kebort, spokesperson for the Energy Regulatory Office, explains, “The domestic transmission system now primarily serves to ensure supplies to domestic customers. Without this critical infrastructure, gas supplies to these customers could not be realized at all”.
Despite concerns raised by the District Heating Association about the regulator favoring the profits of the state-owned gas transporter Net4Gas over consumer protection, both the regulator and analysts assert that ownership is irrelevant. The Energy Act mandates that regulated payments must cover the legitimate costs of system operators, regardless of whether they are state-owned or private.