- Hans Weber
- November 29, 2023
ČEZ Prodej Reports Surge in Customer Demand for Fixed Energy Contracts Amid Energy Crisis
Prague, [Date] – ČEZ Prodej, the leading energy company, has witnessed a remarkable increase in customer demand for fixed energy contracts. After a seven-month hiatus due to the ongoing energy crisis, the company reintroduced two and three-year fixed contracts in March. Recent figures indicate that approximately one-third of all new electricity contracts and over half of new gas contracts have been for fixed products, reflecting customers’ growing need for price certainty in the current energy market landscape.
Customers are responding to the current situation, with wholesale energy prices stabilizing and the upcoming heating season approaching. Moreover, the expiration of price caps on commercial energy costs has also played a role in influencing customers’ decisions.
Short-term and long-term price certainty seem to be the driving factors behind customer preferences for one-year and three-year fixed contracts. Tomáš Kadlec, the CEO of ČEZ Prodej, noted that the interest in fixed products has been steadily increasing, potentially due to the approaching heating season and the expected end of government-imposed price caps. Customers are seeking clarity about future energy prices and closely monitoring the developments in wholesale energy prices, which have ceased to decline and have even shown slight increases in some cases. The preference for three-year fixed contracts with gradually decreasing prices signals customers’ inclination towards long-term stability in their energy expenses.
In contrast to the past, where fixed contracts represented only a fifth of electricity contracts and a third of gas contracts in May, the demand for two-year fixed contracts has also risen significantly. The energy company had temporarily suspended offering multi-year fixed contracts during the peak of energy prices last year. However, the reemergence of stabilized and declining prices allowed the company to reintroduce such contracts this spring. The innovative offering includes the benefit of gradually decreasing electricity prices yearly, providing customers with increased flexibility compared to fixed rates for the entire contract duration.
With approximately 160,000 customers currently under fixed-rate contracts exceeding government caps, ČEZ Prodej is proactively reaching out to them through various communication channels. The company aims to offer these customers new and advantageous plans with declining prices to align with the upcoming end of government price caps.
Customers who entered into multi-year fixed contracts before the energy crisis are also being approached, presenting them with the option to continue with the same fixed rate or choose a different product better suited to their needs.
As the energy market prepares for the end of government-imposed price caps, providing customers with enhanced choices and flexibility in their energy contracts has become a paramount priority. All new contracts are now being offered at prices that accurately reflect the current price list, further ensuring transparency and reliability in the energy services provided by ČEZ Prodej.
Article by Prague Forum