Despite wholesale electricity prices stabilizing to levels seen three years ago, Czech households continue to grapple with significantly higher electricity bills compared to pre-energy crisis rates. This predicament persists even as industry experts anticipate a decrease in retail prices, albeit not to pre-crisis levels.

Jiří Tyleček, an analyst at XTB, highlights a crucial factor contributing to this discrepancy: while the price of electricity has indeed decreased, distribution costs have surged. Consequently, Tyleček asserts that reverting to pre-crisis end-user prices is unlikely.

In June 2021, electricity prices on the exchange hovered around 70 euros per megawatt-hour, a figure that remains relatively unchanged today and significantly lower than the peak observed last year. However, the scenario differs when examining tariffs imposed by major suppliers like ČEZ. For instance, the indefinite Basic tariff in Central Bohemia has surged from 4.80 CZK in 2021 to approximately 8.12 CZK now, translating to an annual difference of over 8000 crowns for an average consumption of 2500 kilowatt-hours.

Moreover, regulated payments for renewable sources have been reintegrated into the regulated segment, with consumers charged 60 haléřů for each kilowatt-hour consumed. This shift towards green energy necessitates substantial investments in the energy network, a trend expected to persist in the coming years, according to Tyleček.

The lag between changes in exchange prices and their reflection in household electricity bills exacerbates the situation, with Tyleček noting that it takes several months for adjustments to be incorporated into pricing structures. While analysts foresee a continued downward trend in consumer prices, they caution that the decline will not restore prices to pre-crisis levels, underscoring the enduring impact of the energy crisis on household expenditures.

Article by Prague Forum