Czech utility ČEZ to cut electricity and gas prices for 1.7 million customers from next year

The energy company ČEZ will cut energy prices for a total of 1.7 million customers from the start of next year. It will lower the price of electricity on open-ended contracts by around six percent and the price of gas by ten percent. Compared with the start of this year, the reduction will amount to hundreds of crowns per megawatt-hour consumed. ČEZ Prodej informed the Czech News Agency (ČTK) of the changes today. Other suppliers are also gradually cutting prices; for example, E.ON will reduce gas prices by 12 percent for 150,000 customers from October.

The price cuts will apply to both existing and new customers without a fixed-term contract. From January 1, ČEZ will lower the price of gas without a fixed rate for households to 1346 crowns per megawatt-hour (MWh), excluding VAT. The company will cut the price of electricity without a fixed rate to 3388 crowns per MWh, excluding VAT, under the most common D02 tariff. Compared with the start of this year, electricity will therefore be 570 crowns per MWh cheaper, excluding VAT, and gas will be 440 crowns per MWh cheaper, excluding VAT.

ČEZ Prodej CEO Tomáš Kadlec noted that the company also cut prices this year: twice for products without fixed rates and three times for tariffs with a fixed-term commitment. “At the same time, we are continuing our long-term awareness campaign focused on energy savings. Our aim is to help people reduce their consumption to a minimum while also offering them the best possible price,” Kadlec said.

Prices will be adjusted automatically from the New Year, so customers do not need to do anything, the company said.

Other suppliers have also been gradually lowering their price lists since the start of this year. From October, at the beginning of the heating season, E.ON will cut gas prices for around 150,000 customers without fixed rates. A MWh of gas will cost 1755 crowns including VAT (1450 crowns excluding VAT), 12 percent less than current prices. This will be the supplier’s second across-the-board price cut, meaning that gas prices will be a quarter lower than at the start of the year. E.ON has also cut prices for its fixed-rate products this year.

From the start of September, Pražská energetika also cut energy prices for around 700,000 customers without fixed rates. Electricity prices fell by up to 20 percent on Sunday compared with the previous price lists, while gas prices fell by 16 percent. Suppliers including innogy, Pražská plynárenská, Centropol, epet and Tedom have also gradually cut prices for both fixed-rate and non-fixed-rate products this year. Suppliers are also gradually introducing new long-term tariffs.

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