Survey: share of Czechs expecting further energy price increases rises year on year

Compared with last year, a larger share of people this year expect energy prices to rise further. According to 42 percent of households, energy prices could rise again this year, while 55 percent expect them to increase over a longer period. However, three-quarters of households believe energy prices will have no or only a small impact on their budgets this year. The findings come from a survey by Ipsos for energy group ČEZ, whose representatives presented the results to journalists today. It surveyed 1001 people aged over 18 and was conducted in March this year.

Specifically, 41 percent of people expect no or only a minimal impact, while a further 33 percent expect to make only moderate cuts to some spending. In February, energy prices fell by 3.6 percent year on year, according to data from the Czech Statistical Office (ČSÚ), and by 4.9 percent in March. The survey found that 70 percent of households pay up to 3000 crowns a month for electricity, while 19 percent pay more than 3000 crowns.

Households expect energy prices to rise because of general price increases, conflicts around the world or rising inflation. According to the Czech Statistical Office, inflation was unchanged year on year at 2.7 percent in March. The Czech National Bank expects average inflation of 2.4 percent for the full year, which would match last year's figure. The Ministry of Finance's forecast puts average inflation this year at 2.3 percent.

„Although people in the survey believe energy prices could rise in the future, the data do not point to that so far. On the contrary, wholesale electricity and gas prices for the coming years indicate a decline,” said Tomáš Kadlec, CEO of ČEZ Prodej.

Energy prices consist of a commercial component set by suppliers and a regulated component overseen by the state. The regulated component currently makes up about 40 percent of the final electricity price for households, and around 20 percent of the gas price. For large consumers, the regulated component accounts for a smaller share of the final electricity price.

Over the next five years, the regulated components of energy prices are also expected to rise, according to the Energy Regulatory Office (ERÚ), by roughly the rate of inflation or at most one to two percentage points above it. This year, the regulated component of energy prices for households rose by 1.4 percent for electricity and 8.6 percent for gas. Since the start of the year, this has meant an increase of tens of crowns per megawatt-hour (MWh) consumed. For large consumers, regulated electricity prices have, by contrast, fallen slightly. Last year, regulated energy prices rose by tens of percent in response to the energy crisis and sharp increases in market prices.

At the end of December last year, 37 percent of respondents were concerned about high energy prices, according to the Consumer Sentiment Tracker survey. This was the lowest figure since 2022, when concerns about high energy prices began to rise after a sharp increase in prices. A similar proportion of people in the Czech Republic were concerned about armed conflict, while 28 percent were worried about poverty and social inequality.