Czech energy regulator fined electricity and gas suppliers a record CZK 14.3 million last year

The Energy Regulatory Office (ERÚ) fined energy suppliers a total of CZK 14.3 million last year for practices that harmed consumers. This is the highest amount in the regulator’s more than 20-year history; the previous record was CZK 8.5 million, set the year before last. Last year’s penalties included the highest single fine to date, CZK 4.76 million, imposed on Armex Energy. The regulator sanctioned suppliers mainly for failing to honor fixed prices and for late billing. ERÚ announced the figures today.

“Last year, we punished suppliers and brokers for offenses against their customers. This led to several unenviable records. In 2024, we issued the highest-ever fine for practices against consumers, and the total amount of penalties was also a record,” said Jan Šefránek, chair of the ERÚ board.

According to Šefránek, the regulator often dealt with billing problems, including cases where some suppliers did not send bills at all. “Some of the fines, including the highest one, concerned offenses committed during the energy crisis,” he noted.

In some cases, he said, the fines became final only after a delay because suppliers appealed the regulator’s initial decision, so the penalties were handled in what is known as the second instance. The regulator has imposed other fines at first instance so far. In addition to imposing fines, ERÚ can revoke a supplier’s license in extreme cases. Last year, it revoked the license of Lidová energie, which is no longer allowed to operate on the market.

“We have also imposed several penalties, some of them very high, at first instance, and we will finalize them this year. Alongside prosecuting offenses, we will place great emphasis on preventing them. Our priorities include both educating consumers and strengthening their rights, as well as tightening the rules for dishonest suppliers,” Šefránek added.

Enforcement proceedings are often preceded by monitoring. Last year, ERÚ received 480 complaints requesting checks on the conduct of suppliers and brokers toward consumers. Although this was down from 668 the year before last, it was still higher than the total for 2020 and 2021 combined.

“Most complaints concerned checks on suppliers. The most common problem was that they issued energy bills late or did not prepare them at all. We also heard from electricity generators with photovoltaic plants who believed that suppliers had cut the purchase price for their electricity unfairly. In these cases, it depends on an individual assessment of whether the contract terms allow it,” explained Martin Bortlík, director of the regulator’s inspection department.

The regulator also reported a sharp increase in complaints about brokers, with the number tripling compared with 2023. “Energy scammers have unfortunately become more active as the market has picked up. They often operate unlawfully without being registered, but future problems can easily be avoided here: the register is publicly available on our website,” Bortlík added.