Customers of Pražská Teplárenská, a heating company under the Veolia group, recently received letters notifying them of a six percent increase in heating prices for the upcoming year. While the company expresses an effort to maintain lower heating prices, various factors, including fuel costs, emission permit prices, escalating operating and maintenance expenses, and the current high inflation rate, necessitate the adjustment.

The justification for the price hike has raised eyebrows, with some customers questioning the decision. Notably, a reader pointed out that this year, the price of gas used by Pražská Teplárenská during peak times has significantly decreased. The reader expressed dissatisfaction, highlighting a 50% increase in heating costs in Prague over the past two years.

In response, Pavel Maďar from Pražská Teplárenská explained that the production of heat for Prague relies only marginally on gas, constituting about 2.5% of total supplies. While the reduction in gas prices has contributed to a slight decrease in the variable component of the 2024 price, a substantial increase in other costs has led to an average price hike of six percent.

In contrast, Teplo pro Prahu, another heating company, has indicated that it will maintain current prices in some locations and even slightly reduce them in certain areas. However, in regions where it procures heat from Pražská Teplárenská, it must adhere to the pricing set by the latter.

The announcement underscores the complex interplay of factors influencing heating prices, with companies grappling with the need to balance affordability for customers against the escalating costs associated with energy production and distribution.

Article by Prague Forum