ČEZ to cut fixed-price energy prices by hundreds of crowns from April; other Czech suppliers also plan cuts

Energy company ČEZ will cut electricity prices from April and lower fixed-price gas tariffs. Compared with its current price list, consumers will save hundreds of crowns a month, the company says. ČEZ informed the Czech News Agency (ČTK) today. Other suppliers are also gradually cutting prices this year in response to falling wholesale energy prices.

This year’s third price adjustment at ČEZ will this time apply to tariffs with a one-year price fixation. Electricity will cost 3267 crowns excluding VAT per megawatt-hour (MWh). According to the company, an average household consuming 3.5 MWh a year will save 1368 crowns including VAT compared with the current standard tariff. Gas prices will also change, with gas costing 1367 crowns per MWh, more than 280 crowns per MWh less.

Earlier this year, ČEZ had already cut prices for its fixed-price products by several hundred crowns per MWh. The company says this is due to the gradual decline in wholesale energy prices on the market.

Other suppliers have also been gradually lowering their tariffs since the start of this year. For example, innogy cut its fixed-price electricity tariff by 600 crowns per MWh and gas by 200 crowns per MWh from March. “We will announce further price cuts in the coming weeks. We are ready to respond promptly again to changes in purchasing prices or to the competition,” innogy spokesperson Pavel Grochál told ČTK today. He said customer interest in longer price fixations was continuing to grow, with two-year contracts dominating this year. According to Grochál, around 80 percent of innogy’s customers have fixed-term contracts.

In recent weeks, E.ON and epet have also cut prices by several hundred crowns per MWh. From March, Pražská plynárenská also lowered its gas price by an average of 6.1 percent. Some suppliers are waiting before cutting prices, partly because they bought products in advance at higher prices.

The price cuts reflect the gradual decline in electricity and gas prices on the energy market. Electricity now costs 85.3 euros (roughly 2158 crowns) per MWh on the exchange, about 40 percent less than a year ago. Gas prices have fallen even more sharply, by approximately 50 percent, to the current 34.50 euros (more than 872 crowns) per MWh.