Prague, the capital city, is optimistic about substantial savings in its electricity and gas expenditures for the year 2024 following the turbulence in energy markets in the previous year. The city estimates potential savings of around 100 million crowns, with the expectation of paying less than 700 million crowns for its energy needs compared to the previous year.

Mayor Bohuslav Svoboda and Tomáš Jílek, the head of the city’s technological company, have confirmed the successful arrangement of secure energy supplies for the entire year. The city has negotiated favorable rates for 2024, covering over two hundred contributory organizations and public lighting. The agreed-upon prices are 3514 crowns per MWh for electricity and 1534 crowns per MWh for gas.

Svoboda proudly stated that these rates are the most competitive in the current market, and Jílek emphasized that they are positioned towards the lower end of the current price level in the Czech Republic. Importantly, these prices are fixed for the entire year, insulating the city from potential market fluctuations.

Notably, the cost savings for 2024 represent an approximately 100 million crown reduction compared to the previous year. Jílek expressed optimism that expenses could further decrease, highlighting ongoing efforts to enhance efficiency and minimize electricity and gas consumption. Prague’s annual energy consumption is estimated to be around 135 GWh of electricity and over 90 GWh of gas.

To secure its energy needs for the year, the city has entrusted city technologies with the responsibility. Last year, Prague adopted a strategic approach to energy procurement, initially purchasing electricity at spot prices in the first half of the year and subsequently securing a new price through a competitive process in June. The positive outcome in cost savings reflects collaborative efforts across stakeholders and a commitment to optimizing energy consumption amidst challenging market conditions.

Article by Prague Forum