Monthly Energy Price Fixation Saves Thousands of Koruna

A minority of households have a classic indefinite-term contract or a more extended fixation period for energy procurement. However, thousands of households utilize the opportunity to fix prices for only a month, resulting in significant savings – thousands of koruna per year compared to others.

The market situation determines the price. Thus, every month, the payment for power, electricity, or gas changes for consumers. However, the regulated part of the price remains the same for everyone.

“This product gained popularity last year. An increasingly larger group of customers have a monthly fixation, where prices are derived from short-term markets. They feel the current favorable price development almost immediately and now have the most advantageous prices on the market,” said Jiří Gavor, an analyst at ENA.

Companies like Tedom and Lama Energy offer such products. Lama Energy is selling one kilowatt-hour of power electricity at a standard distribution rate of 3.45 CZK with VAT, so the total payment for a kilowatt-hour with the regulated component comes out to 6.78 CZK.

However, it is necessary to count on the fact that the price of short fixation can quickly change, even upwards. Therefore, it must be regularly monitored.

“It’s a good product for savvy customers who will watch the supplier’s announcements. For a typical consumer who doesn’t like to deal with energy price developments and prefers peace, an indefinite-term contract or perhaps an annual fixation is more suitable,” cautioned Gavor.