Czechs' fears of rising energy prices grow: 60 percent now expect prices to rise

Fears among Czech households about how energy prices will develop are growing. Now, 60 percent of Czechs expect them to rise, the highest share in the past two years. By contrast, only seven percent of people expect prices to fall. People most often cite the war in the Middle East and US policy as the main reasons for rising prices. So far, however, these worsening expectations have had little effect on consumer behaviour: only around one in seven people plan to switch suppliers, while more than three-quarters are not considering it at all. The findings come from a survey by epet energie, made available to the Czech News Agency.

The share of Czechs expecting energy prices to rise further has jumped compared with previous years. Last autumn, around 49 percent of people said they feared prices would rise; in spring 2024, the figure was about a third of respondents. The number of people expecting energy prices to fall has also declined, from 15 percent last year to seven percent now.

As concerns about price trends have grown, the reasons Czechs give for expecting prices to rise have also changed. This year, half of respondents cite the US war with Iran or US policy as the main factor. Around a quarter also see risks in the current government's actions and domestic politics, while only 18 percent of Czechs mention the war in Ukraine. Yet last autumn, the war in Ukraine, alongside the election to the Chamber of Deputies, was the main source of concern.

"The energy market is highly sensitive to geopolitical events, and households are clearly feeling this uncertainty. Something that was not among the main concerns a year ago can come to the fore within just a few months," said Roman Šmíd, sales director at energy company epet energie.

Despite growing concerns about future price trends, however, the survey found that only around 15 percent of Czechs currently plan to switch suppliers. More than three-quarters of households do not plan to do so. Among those who do plan to switch, price is by far the main consideration. In 86 percent of cases, they cite prices that are too high compared with competitors.

According to the survey, Czechs are much more likely to seek savings by reducing their own consumption. Nearly seven in ten households consciously saved energy during the last heating season, and they do not plan to ease up on their efforts this year. Around 85 percent of households plan to heat their homes as much as last year, while another 13 percent plan to heat them less.

"The quickest response to fears of higher energy bills is usually to turn down the heating, but that may not be the most effective approach. More than half of households that consciously cut their consumption saved up to 20 percent. Before I start sacrificing my comfort, I should first check how much I pay per megawatt-hour, what the terms of my contract are, and whether my price is still in line with the market," Šmíd noted.

The survey was conducted through the Czech National Panel at the turn of August and September. It involved 1024 respondents.