Household electricity and gas prices are poised to witness a welcome decline this year, following the downward trend in wholesale prices within the market. This decrease is expected to gradually manifest in the offers provided by energy suppliers over the coming months. While the prospect of lower prices is encouraging for consumers, experts caution against immediately opting for long-term fixed contracts.

Jiří Gavor, an analyst at ENA, recommends a measured approach, stating, “Long-term fixations should wait for some time. Suppliers have not yet reached the bottom, and the ongoing gradual lowering of prices is in progress. I would recommend a contract for an indefinite period or a one-year fixation.”

Gavor believes that the optimal time for more extended fixed contracts will likely present itself in the second half of the year. Petr Lajsek from Purple Trading supports this view, suggesting that fixing prices in contracts now makes sense for a shorter period, perhaps until the end of the year, enabling customers to secure stable prices for the upcoming winter.

However, consumers are advised to temper their expectations regarding a substantial decrease in overall costs. Lajsek warns, “Consumers probably won’t experience a significant decrease. The fall in exchange prices will compensate for the return of the renewable resources fee and the increase in distribution fees.”

Despite the potential savings, the market is currently witnessing intense competition for new customers, according to Gavor. This competitive landscape is expected to lead to the introduction of new products, primarily aimed at attracting new customers. Consequently, customers stand to benefit from the best prices when opting to switch to a competitor, signaling an opportune time for those looking to explore alternative energy suppliers. As the market dynamics continue to evolve, consumers are encouraged to stay vigilant and consider short to medium-term fixed contracts to navigate the shifting landscape effectively.

Article by Prague Forum