CEZ to cut fixed energy prices in Czechia from Friday, by tens of percent compared with start of year

Energy company CEZ will cut fixed-term gas and electricity prices from Friday. The company will offer energy supplies under fixed-term contracts at prices tens of percent lower than at the start of this year. From January, the company will also cut prices for non-fixed products. CEZ informed CTK of this today in a press release. Other suppliers are also gradually cutting energy prices.

CEZ is cutting prices for energy supplied under fixed-term contracts for the fourth time this year; it last did so in May. From 15 November, it will offer two-year gas contracts for 1150 Kč per megawatt-hour (MWh), including VAT. The price of a two-year fixed contract will therefore be half what it was at the start of the year. The company said this is currently the lowest gas price available on the market. Gas under a one-year contract will cost 1390 Kč per MWh, including VAT, a 38 percent reduction compared with January 2024. Electricity under a one-year contract will cost 3255 Kč per MWh, including VAT. That is a 26 percent decrease compared with the start of this year.

A household that uses electricity only for lighting and cooking and consumes 2.5 MWh a year will save almost 2900 crowns a year on electricity, according to the company. Households that use electricity for heating (under tariff D57) and consume ten MWh a year are said to save more than 10,000 crowns annually. CEZ will also cut the prices of other fixed-term offers by roughly a quarter year on year.

„We would like to encourage customers to sign up for new products online in the first instance, so we have fine-tuned the process to make it as simple and user-friendly as possible. They only need to upload an electronic bill from their current supplier, and the application will pre-fill most of the required information. The whole process then takes around ten minutes. We have also prepared attractive financial bonuses for customers who sign up online,“ said Tomáš Kadlec, CEO of CEZ Prodej.

From January, CEZ will also cut energy prices for a total of 1.7 million customers with open-ended contracts. It will reduce the gas price by around six percent to 1346 crowns per MWh, excluding VAT. For electricity without a fixed term, the company will cut the price under the most common D02 tariff to 3388 crowns per MWh, excluding VAT. Compared with the start of this year, one MWh of electricity will therefore be 570 crowns cheaper, excluding VAT, and one MWh of gas will be 440 crowns cheaper, excluding VAT.

Other suppliers have also been gradually reducing their price lists since the start of this year. Prague Energy (PRE) cut prices from the beginning of September for almost 700,000 customers without fixed-term contracts. Electricity prices fell by up to 20 percent to 3,20 per kilowatt-hour, excluding VAT, while gas prices fell by 16 percent to 1,45 Kč per kWh, excluding VAT. During the year, E.ON, innogy, Prague Gas, Centropol, epet and others also cut their prices. Suppliers are also preparing new price lists for next year.

The price cuts are a result of the gradual decline in electricity and gas prices on the energy market, which have fallen by several tens of percent compared with the previous two years. A megawatt-hour of electricity currently costs 95,2, euros (around 2408 Kč) on the exchange. A MWh of gas costs approximately 44 euros (more than 1113 Kč) per MWh. Since spring, however, energy prices have risen by several euros per MWh.