Czech utility ČEZ cuts fixed-term energy prices as heating season starts, plans further cuts from January

Energy company ČEZ has cut prices for fixed-term energy supplies at the start of this year's heating season. It reduced prices for gas and electricity contracts with two- and three-year terms by hundreds of crowns per megawatt-hour (MWh). ČEZ is also planning further cuts from January next year, when it will lower prices for customers on open-ended contracts. ČTK was informed of this by ČEZ. Other suppliers are also gradually cutting energy prices.

The country's largest energy supplier is now offering gas with a two-year price fix for 1180 Kč per MWh including VAT, a 25 percent year-on-year reduction. According to company data, customers heating their homes with gas and consuming an average of around ten MWh will save more than 3900 crowns a year. ČEZ is offering gas on a three-year contract for 1089 Kč per MWh including VAT, 40 percent less than last year. For households that heat with gas and consume an average of ten MWh a year, this means savings of about 9000 crowns annually.

"We constantly monitor wholesale prices and cut prices whenever the situation allows us to," said ČEZ Prodej CEO Tomáš Kadlec.

According to him, ČEZ has gained more ground in the gas market than any other supplier since the start of this year. It wants to continue this trend.

ČEZ has also announced cuts to fixed-term electricity products. It has reduced the price of its tariff with a contract running until October 2027 by nearly 330 Kč year on year, to 3099 Kč per MWh including VAT.

ČEZ is preparing further price cuts for the start of next year. "We expect to stick to our traditional date for cutting prices on open-ended products, January 1 of the new year. We are now carrying out the necessary calculations and will inform all customers of the price reductions in good time," Kadlec said.

Other suppliers are also gradually cutting their energy price lists. For example, Pražská energetika will cut prices from November for more than half a million customers who do not have fixed prices. Electricity prices will fall by up to ten percent compared with current levels, while gas prices will drop by eight percent. Since the beginning of September, E.ON has temporarily cut energy prices by ten percent for 800.000 customers with contracts without a fixed price. This amounts to hundreds of crowns per MWh consumed, and the price cut is currently set to last until the end of the year. Since September, innogy has cut electricity and gas prices for new customers by hundreds of crowns per megawatt-hour. Most of the larger suppliers also cut prices at the beginning of the year.