Survey: most Czech companies unnecessarily overpay for energy by up to billions of crowns a year

Most Czech companies unnecessarily overpay for energy by up to billions of crowns a year. They often choose suppliers and their tariffs at random or not at all, and do not respond to market developments. Around a quarter actively manage their energy bills, while about ten percent of companies put suppliers out to tender and have their own energy expert. This is according to a survey of companies conducted by Tedom.

"We see a deeply rooted problem here. While services in other sectors are optimized down to the last detail, energy remains neglected by most companies. Yet this is precisely an area where savings can be made relatively easily," said Jakub Odložilík, managing director of Tedom Energie.

According to him, the problems date back to the energy crisis, which came as a shock to companies: energy prices surged, and businesses, often without the necessary expertise, locked in supplies at the highest prices ever. Although the energy market has since stabilized, most companies have yet to return to a market-based approach, according to the survey. "There are two main concerns in the market today: companies fear they will overpay by locking in prices, or, conversely, fail to manage fluctuations in spot prices," Odložilík noted.

According to the survey, about one-tenth of businesses in Czechia act most responsibly: they have an in-house energy specialist, plan strategically and regularly put their supplier out to tender. These are typically large manufacturing plants, hospitals or retail chains. Another 15 percent of companies, including larger hotels, government offices and shopping centers, monitor the market, invest in renewable energy sources or work with external consultants. The largest group of companies, consisting mainly of smaller administrative or manufacturing businesses, typically address energy only when their contract expires, without conducting an in-depth analysis. Around a fifth of companies do not even do that, according to the survey, and stay with their existing supplier after receiving its first offer.

According to Tedom, which in this context has introduced a new tariff for companies combining fixed and spot prices, the survey results point not only to passive decision-making but also to untapped potential. If companies paid more attention to energy management, savings on energy costs for Czech businesses could amount to billions of crowns a year, the company estimates.

"Unfortunately, the problem of high costs for companies is mainly driven by the legal impossibility of terminating a contract, regardless of whether the price for consumption is high at the time. This is entirely different for household customers, who can terminate their contracts," said Roman Šmíd, sales director at energy company epet.

According to him, larger companies have an advantage in this respect, as they can afford their own energy experts, who can negotiate individual offers with suppliers that respond flexibly to market conditions. State-owned companies, Šmíd said, address prices by holding auctions for shorter periods. "I see the biggest problem here with companies that do not discuss energy prices with their supplier and add them to their production costs, thus passing the cost of expensive energy on to the end consumer," Šmíd added.