As the calendar turns to January, households in the Czech Republic are set to confront a notable surge in electricity payments, significantly impacting family budgets. The Energy Regulatory Office is implementing this increase, primarily driven by a staggering 66% rise in the regulated portion of the electricity price. This hike, which equates to an average of forty percent of the total payment, is attributed to the government’s decision to discontinue covering household support for renewable sources and the escalating distribution costs that were subsidized this year.

For families with a standard consumption of 3000 kilowatt-hours, the financial burden will be palpable, translating to thousands of crowns in additional expenses annually. While the government assures that prices will only experience minimal increments, this assertion is made by comparing the new rates to the elevated prices set in January, overlooking the fact that several suppliers have been providing electricity at considerably lower rates since spring.

The impact of the price surge extends to households with fixed rates and those currently below the government’s capped rate of 6 CZK per kilowatt-hour, affecting a broad spectrum of consumers. However, those with indefinite contracts, like with ČEZ, paying a higher total price above eight crowns per kWh, will see a more modest increase, thanks to a reduction in the bulk electricity price by the company starting January.

Furthermore, the monthly payments linked to the size of the circuit breaker will witness an additional increase, adding hundreds of crowns to annual expenditures. The surge in regulated gas prices, approaching forty percent, will also contribute to a significant uptick in the overall expenditure on gas, further exacerbating financial concerns for households.

As the cost of essential utilities continues to escalate, Czech families are bracing themselves for a challenging start to the new year, grappling with higher electricity and gas bills that may strain household budgets and necessitate careful financial planning.

Article by Prague Forum