Significant Drop in Energy Prices

In recent months, there has been a significant decrease in energy prices in the Czech Republic. Electricity and gas suppliers have been offering more advantageous rates than previous months, reflecting the decline in wholesale prices.

Households using gas for cooking, water heating, and heating can now save more than 15,000 Czech koruna compared to the beginning of spring. By signing a new gas supply contract, customers can expect to pay approximately 15% less than in March.

According to analyst Radim Dohnal from Capitalinked, the downward trend in prices is expected to continue. Opting for shorter agreements is recommended for households whose current fixed-rate contracts are expiring.

The best prices are offered for contracts with fixed rates. It is not necessary to commit to long-term contracts. For example, E.ON offers the best electricity prices for a one-year fixed-rate contract. An even lower price is available with the MND’s “Léto 25” tariff, which requires customers to remain with the same supplier until the end of June 2025, nearly two years from now.

All significant suppliers now offer prices lower than the government-set caps for this year: six Czech koruna per kilowatt-hour (kWh), including VAT for electricity, and three Czech koruna per kWh, including gas. However, these prices must still be supplemented with regulated components and fixed monthly charges.

Short-term fixed-rate contracts, such as those offered by Tedom, can be advantageous for those who have the time to monitor prices.

Analysts expect further decreases in energy prices. Gas prices have already consolidated after a confident increase caused by a strike in Australia, and a slow decline is anticipated, possibly reaching less than fifty euros per megawatt-hour for delivery next year. The price of electricity, which is influenced by gas and emission allowances, is also expected to decrease slightly for deliveries in 2024, approaching a cost of around 120 euros per megawatt-hour.

As for savings in district heating, hundreds of thousands of households are expected to benefit. Customers who use gas for cooking and consume 80 cubic meters per year will pay less than 3,800 Czech koruna by signing a contract with MND.

The recent drop in energy prices allows households to save on energy bills. Exploring different suppliers and contract options is recommended to find the most advantageous rates and maximize savings.