While many electricity suppliers have started offering cheaper tariffs, Prague Energy (PRE) continues to keep its prices at the government-imposed ceiling, even as spot electricity prices have dropped to less than half. This has drawn criticism from customers and industry observers who question PRE’s reluctance to lower their rates.

A comparison of prices reveals that PRE’s PRE-PROUD FIX tariff is set at CZK 5,000 per MWh (CZK 6,050 with VAT), while the fixed tariff (PRE PROUD FIX) reduces the cost to CZK 4,740 (CZK 5,735.4 with VAT) per MWh. These prices do not include distribution and other regulated charges. If government ceilings were not in place, PRE would sell 1 MWh for CZK 8,925 without VAT, significantly higher than the current rates.

The disparity between PRE’s prices and those of other suppliers, such as Prague Gas, is evident. Prague Gas has recently announced price reductions of 19 percent for electricity and 23 percent for gas, allowing households to save approximately CZK 2,900 and CZK 2,700 per year, respectively. These reductions are welcomed by customers and highlight the discrepancy between PRE and its competitors.

When asked about the possibility of compensating customers for the price difference caused by the government ceiling, PRE stated that it generally does not provide such compensation. The Energy Regulatory Office, responsible for monitoring compliance with government regulations, emphasized the importance of customers carefully reviewing offers from different suppliers and considering factors beyond price alone.

The Ministry of Industry and Trade echoed the sentiment, advising customers to thoroughly analyze market offers, including contract duration, termination conditions, sanctions, supplier creditworthiness, and service quality, before making a decision. Customers dissatisfied with their current supplier are encouraged to explore potentially more advantageous offers from other suppliers and have the flexibility to switch regardless of their distribution area.

PRE’s decision to maintain high electricity prices, despite market rates falling, raises concerns about their commitment to providing competitive pricing and customer satisfaction. As the market evolves, it is crucial for electricity suppliers to adapt their pricing strategies to remain in line with market trends and offer fair and affordable options to consumers.

Article by Prague Forum