Jurečka: Average Czech household pays 62% more for energy than two years ago

In June, the average household paid 15 percent more for energy than a year earlier and 62 percent more than two years earlier. Pensioners, single-parent families, low-income households and those in small municipalities, as well as homeowners, were hit hardest by price rises. The findings of the Research Institute for Labour and Social Affairs (RILSA) were presented at a press conference today by Labour Minister Marian Jurečka (KDU-ČSL). He said that energy price caps and the housing allowance had helped manage the situation, but that preparations for the coming heating season and further savings measures were needed.

According to the statistical office, the average household has 2.29 members. There are 4.49 million households in Czechia in total.

Energy prices began rising sharply two years ago following the collapse of Bohemia Energy, when around 900,000 of its customers had to switch to suppliers of last resort. Their advance payments then multiplied. Customers of other companies that ceased supplying energy faced the same situation. Last year, prices rose because of Russia’s invasion of Ukraine and the war.

According to Jurečka, so-called energy inflation—the rise in energy prices—hit pensioners hardest. In June this year, energy cost them 73 percent more than two years earlier. One reason is that older people often live in large apartments and are unable to move to smaller ones, the labour minister noted. Single-parent families pay 66 percent more than two years earlier. Over the past two years, rising energy prices have cost households 5.6 percent of their net income. RILSA found that after paying their energy bills, pensioners have nine percent less money available, while the figure is around seven percent for the lowest-income households, single-parent families, households in smaller municipalities and homeowners.

“Throughout this period, we have really tried to take steps to help Czech society, households, the public sector and businesses. This year alone, assistance from the state budget for energy price caps will amount to more than 120 billion crowns… Now we need to focus again on the heating season and look for ways and measures to reduce costs. It is also important to take targeted measures. We cannot continue with across-the-board measures,” the minister said.

According to him, targeted measures include support for insulating homes, replacing windows and doors, and installing photovoltaic systems. Under the environment ministry’s New Green Savings Light programme, a total of 3.7 billion crowns has so far been paid out to 33,118 applicants. The average grant was 110,514 crowns, Environment Minister Petr Hladík (KDU-ČSL) specified.