Czechs are paying more attention to energy prices ahead of heating season, preferring fixed-price contracts

Before the start of the heating season, Czechs are paying more attention than before to energy prices and new electricity and gas supply contracts. Interest in comparing offers has now doubled compared with this spring. Consumers are increasingly opting for long-term contracts. As many as four-fifths of people who signed a new contract or switched energy suppliers in recent weeks chose a long-term fixed-price deal, meaning a contract lasting two to three years. This is according to data from the Ušetřeno.cz portal, which compares price offers from energy suppliers.

Energy suppliers in Czechia have gradually been lowering prices this year to below the government price cap. According to the Ušetřeno.cz index, based on offers from the seven largest Czech suppliers, the average market price of electricity has fallen by almost 23 percent since the start of the year, from 4912 Kč per megawatt-hour (MWh) in January to 3787 Kč excluding VAT in August.

„Lower prices are primarily intended to attract new customers,“ said Tomáš Vrňák, an energy analyst at Ušetřeno.cz.

According to the portal’s data, however, consumers have been responding more strongly than before to the latest price cuts. „We can see that, after last year’s experience, people are actively looking at energy prices ahead of the heating season. Interest in comparisons has doubled compared with March this year,“ Vrňák noted.

According to the portal’s data, customers increasingly prefer long-term commitments that guarantee stable prices for the duration of the contract. At present, four-fifths of customers signing a new contract have opted for them. Most are fixed-price deals lasting two to three years. The portal says concerns about volatility in energy markets are behind this trend.

Because of rising prices on wholesale exchanges, the Czech government set price caps for this year of 5000 crowns per MWh of electricity excluding VAT and 2500 crowns per MWh of gas. At the start of the year, suppliers generally offered these prices, but have gradually been lowering them. In recent weeks, new offers have been announced by E.ON, innogy, Pražská energetika, ČEZ, Pražská plynárenská and MND, among others. Other suppliers are also preparing new offers.