The Trick to Lower Electricity Bills in the Czech Republic

Lower energy prices offered by some suppliers in the Czech Republic allow households to save significantly on their electricity bills. Some providers offer electricity at prices up to a third lower than the government ceiling of CZK 6 (approx. $0.28) per kilowatt hour of electricity, including VAT.

This is achieved through short-term fixed prices. Larger energy companies have been able to offer prices below the government ceiling thanks to the favorable development of the wholesale market. E.ON provides the most competitive fixed-price deal at CZK 4.51 (approx. $0.21) per kilowatt hour with a one-year fixed contract.

However, smaller providers offer even lower prices. Tedom Energie currently sells one kilowatt-hour for CZK 3.89 (approx. $0.18), a third lower than the government ceiling, which means an annual saving of over CZK 6,000 (approx. $280) for those using 3,000 kWh.

Smaller companies like Tedom Energie offer lower prices by providing monthly fixed fees linked to market development, avoiding the government’s ban on spot prices related to the stock exchange. The final price depends on the regulated part, a constant monthly fee, and a fee for the switch. Customers can also enjoy an early termination option. The product is relatively unknown, but it has been successful. In February, Tedom Energie had over 4,000 customers.

According to ENA analyst Jiří Gavor, Tedom Energie currently offers the lowest price on the market. Still, customers must know that the final price is subject to regulatory components, making it higher than the suggested price. The regulated part of the standard distribution tariff D02d is about CZK 6, while the final price with the government ceiling is over CZK 8. Another company, MND, offers a tariff with prices linked to the wholesale market and a variable contract term considerably lower than the ceiling price.

Households in the Czech Republic can save significantly on their energy bills through short-term fixed prices offered by smaller companies like Tedom Energie. The government ceiling price of CZK 6 (approx. $0.28) per kilowatt hour of electricity, including VAT, can be up to a third higher than the prices offered by some providers.