Energy contracts are ending for hundreds of thousands of Czech consumers whose former suppliers went bankrupt

Energy contracts will end in the coming days and weeks for as many as hundreds of thousands of households whose previous suppliers ceased operations in 2021. The Czech News Agency (ČTK) was informed of this today by the Energy Regulatory Office (ERÚ). It is advising customers to start negotiating an extension with their supplier several weeks in advance. Most of them will pay more for electricity and gas than they do now. Although household prices have fallen significantly since the peak of the crisis, they are still higher than before Russia’s invasion of Ukraine in February 2022.

In autumn 2021, several companies announced that they were ceasing operations. The most significant was Bohemia Energy, with around 900.000 delivery points. Other companies that closed included Kolibřík, with 28.000 clients, and Františkovy energie, with 5000 customers. In total, around ten companies announced they were ceasing operations between October and December, with others following in early 2022.

People who left those suppliers often signed three-year contracts with new providers. “They will typically now have to decide whether to let their current contract be automatically extended, switch to a different product with their current supplier, or find another supplier,” the ERÚ said.

Most fixed-term contracts include a clause providing for automatic renewal. Unless one of the parties terminates the contract, it continues automatically. From this year, suppliers must notify customers of an upcoming renewal at least 30 days in advance and inform them of the new price and other terms.

“Some consumers still contact us saying that their supplier did not properly get in touch with them before the renewal. The problems mainly concern email communications, which suppliers sometimes really are unable to prove they sent. In other cases, customers are at fault because they do not check their inbox regularly or overlook the message,” said Markéta Zemanová, a member of the ERÚ Council.

She therefore reminds customers to check their email regularly, including their spam folder.

The office recommends that people keep track of when their contract ends and start negotiating well in advance. If they do not agree with the renewal terms, they can discuss changing the contract with their current supplier, or find another provider and terminate their existing contract by the 20th day before its renewal. A template termination notice is available on the ERÚ website.

Zemanová stresses that renewing a contract is just one option. “All you need to do to use our comparison tool for electricity and gas offers is upload your latest bill, and you will immediately find out whether you could get energy more cheaply from another supplier. The differences are really significant: households with low consumption can save thousands of crowns a year, while for those with higher consumption we are talking about tens of thousands,” she said. The so-called comparison tool is also available on the office’s website.