Household electricity prices continued to fall last year. Surprisingly, the biggest drop was for two-year fixed-rate contracts

Household electricity prices continued their modest decline in 2025. The trend, which has persisted since the end of the energy crisis, thus continued last year across all types of products. Prices fell by 8 % on average, and by more than 9 % for two-year fixed-rate contracts. However, products with fixed terms one year shorter or one year longer saw the smallest price declines.

Following the exceptionally turbulent period of 2022 and 2023, the household electricity supply market gradually stabilised. This development was reflected in both the regulated and commercial (unregulated) components of electricity prices.

The commercial (unregulated) component of the electricity price is the part set by suppliers themselves based on market conditions. It includes the cost of purchasing wholesale electricity, trading costs, risk management, operations, and the supplier's profit margin. Unlike the regulated component, this part of the price is not directly set by the state or the Energy Regulatory Office and can vary significantly between products and suppliers.

During 2025, households saw a broad-based decline in average commercial electricity prices. Across products in both the high and low tariff, the average commercial price fell by around 8 %. While at the beginning of the year the average high-tariff price stood at around 3 200 Kč excluding VAT per MWh, by the end of the year it had fallen below 3 000 Kč excluding VAT. A similar trend was evident in the low tariff.

Interestingly, suppliers continued to increase fixed electricity charges on average. Among the twenty largest suppliers, the average fixed charge rose by approximately 15 %. In absolute terms, however, this change has a limited impact on households' total annual costs, as the fixed charge typically accounts for less than one-fifth of the total electricity bill.

The various product types behaved only slightly differently during 2025. Products with three-year fixed terms showed the greatest stability and only a modest decline in prices. The average price fell by around 5 %, while the lowest offered prices decreased by approximately 8 %.

By contrast, two-year fixed-rate contracts responded much more dynamically to falling wholesale prices. Prices declined by approximately 9 % on average, the largest drop among all standard products. One-year fixed-rate contracts recorded only limited price reductions, suggesting a more cautious pricing strategy by suppliers over the shortest fixed-term horizon.

Products without a fixed term remained the most expensive option on the market, but they also responded most quickly to falling wholesale prices. Average prices for these products declined by around 8 to 9 %, while the lowest offered prices fell by as much as approximately 17 %. These products therefore made it possible to quickly benefit from more favourable market developments, albeit at the cost of greater price uncertainty.