Czech households are grappling with increased expenses as the new year brings a surge in the cost of electricity and heating. The elevated costs are attributed to a rise in distribution prices and the reinstatement of payments for renewable sources, amounting to 600 CZK per consumed megawatt-hour. This development has led to an approximate increase of 1.30 CZK per kWh.

Households with fixed-price contracts or those who signed indefinite-term contracts with suppliers at favorable rates in the previous year may particularly feel the impact of the price hike. A typical household with average consumption could witness an increase of up to four thousand koruna in their electricity costs.

For those who maintained an indefinite contract with the largest supplier, ČEZ, at the government-regulated cap of six CZK with VAT per kWh, the company has now reduced the price of bulk electricity to 8.12 CZK, down from 8.17 CZK. However, individuals with fixed-term contracts may experience an increase in electricity prices, such as those with MND, where the cost has risen from 6.71 CZK per kWh to 7.92 CZK from January.

Additionally, the cost of circuit breakers is also on the rise, with increases ranging from 50 koruna per month for a 3×25 A circuit breaker. Gas consumers with a contract from ČEZ, previously governed by a government cap of 3 CZK per kWh with tax, will now see the regulated component decrease from 3.58 CZK to 2.96 CZK per kWh from January.

For households connected to central heating, the news is not better, as coal-fired power plants are implementing price hikes of up to thirty percent, resulting in potential additional costs of up to a hundred koruna per month for affected households, according to Martin Hájek, the head of the Heating Association. The combined impact of these increases is contributing to a challenging financial landscape for Czech households at the start of the new year.

Article by Prague Forum