Czech energy regulator: 4,2% of households and businesses have fixed energy prices above government caps

At present, 4,2 percent of households and businesses have energy prices contractually fixed above the government price caps for electricity and gas. If the caps expire at the start of next year, their electricity and gas bills could rise sharply as a result. This affects 367.000 points of consumption, of which 326.000 belong to households, the Energy Regulatory Office (ERÚ) said in a press release, citing its survey of energy suppliers. The office also urged consumers to try to secure lower prices from suppliers as soon as possible.

The government introduced price caps on electricity and gas in response to the sharp rise in commodity prices on the market during last year’s energy crisis. The caps were set at 6000 korunas per megawatt-hour (MWh) of electricity, including VAT, and 3000 korunas per MWh of gas. Distribution charges must be added to these amounts. The caps apply to households, businesses and public institutions until the end of this year. The government has not yet made a final decision on whether they will remain in place next year, but they are expected to be scrapped.

„Most of the suppliers surveyed have at least some contracts in their portfolios with electricity or gas prices fixed above the current caps and extending beyond the period during which the caps apply. In total, these cover 367.000 points of consumption, or 4,2 percent of the 8,94 million points of consumption in the Czech Republic,“ ERÚ said.

According to its chairman, Stanislav Trávníček, most suppliers have already contacted, or plan to contact shortly, customers whose prices are set above the caps with a lower offer. He urged consumers to respond to such offers in good time. „We strongly recommend that consumers whose prices are fixed above the caps and who have not yet been contacted by their supplier get in touch with them themselves as soon as possible. By taking an active approach, they can secure a lower price from their current supplier or switch to a new one in good time, even if that means paying a penalty for ending their contract early,“ added Markéta Zemanová, a member of the ERÚ Council.

The office found that only a small number of suppliers, covering up to 10.000 points of consumption, are not considering revising fixed-price contracts and lowering prices. Some are concerned that doing so could breach their duty to act with due care, while others say they are prevented from contacting customers directly by contracts with intermediaries. For some, the terms of tenders in which they won the contracts are also an obstacle to changing them.

A recently published survey by Ipsos found that around two-fifths of people had not yet heard that the caps might be scrapped at the end of the year. However, more than half of consumers in the Czech Republic are concerned about the effects of the energy price caps ending. According to the survey, Czechs are rather cautious about switching suppliers. At present, 17 percent of consumers are considering doing so, most often citing an unfavorable offer from their current supplier as the main reason.

People can find information, advice and practical tips related to switching energy suppliers on the ERÚ website.