A growing minority of Czech households are turning to short-term energy price fixation options, deviating from classic indefinite-term contracts or more extended fixation periods. This strategy allows thousands of households to capitalize on significant savings, amounting to thousands of koruna annually compared to other pricing structures.

The dynamic nature of the market determines energy prices, resulting in monthly fluctuations in payments for power, electricity, or gas. While the unregulated part of the price varies based on market conditions, the regulated component remains constant for all consumers.

The popularity of monthly fixation options surged last year, attracting an expanding customer base keen on benefiting from short-term market dynamics. Jiří Gavor, an analyst at ENA, emphasized the advantages of this approach, stating, “They feel the current favorable price development almost immediately and now have the most advantageous prices on the market.”

Several companies, including Tedom and Lama Energy, offer products with monthly price fixation. Lama Energy, for instance, sells one kilowatt-hour of power electricity at a standard distribution rate of 3.45 CZK with VAT, resulting in a total payment of 6.78 CZK per kilowatt-hour when factoring in the regulated component.

However, consumers opting for short-term fixation should be vigilant as prices can swiftly change, potentially increasing. Regular monitoring of price developments is essential for those choosing this approach.

While short-term fixation proves beneficial for savvy customers who closely track supplier announcements and market dynamics, Gavor cautioned that it may not be suitable for the typical consumer who prefers stability and might find an indefinite-term contract or annual fixation more fitting. The diverse options available cater to varying consumer preferences, reflecting the evolving landscape of energy procurement strategies in the Czech Republic.

Article by Prague Forum