In recent months, the Czech Republic has seen a notable reduction in energy prices, benefiting households across the country. Both electricity and gas suppliers are now offering more favorable rates, reflecting the decline in wholesale energy prices.

Households that rely on gas for cooking, water heating, and space heating have the opportunity to save over 15,000 Czech koruna compared to the beginning of spring. By entering into new gas supply contracts, customers can expect to pay approximately 15% less than they did in March.

According to analyst Radim Dohnal from Capitalinked, this downward price trend is expected to continue. For households with expiring fixed-rate contracts, shorter agreements are recommended to take advantage of these cost savings.

The most attractive prices are typically offered for contracts with fixed rates, and long-term commitments are not always necessary. For instance, E.ON provides the best electricity prices for a one-year fixed-rate contract. An even lower rate is available through the MND’s “Léto 25” tariff, requiring customers to remain with the same supplier until the end of June 2025, almost two years from the present.

All major energy suppliers in the Czech Republic now offer prices lower than the government-set caps for this year, which are six Czech koruna per kilowatt-hour (kWh) for electricity and three Czech koruna per kWh for gas, both including VAT. It’s important to note that these prices may still be subject to regulated components and fixed monthly charges.

Short-term fixed-rate contracts, such as those offered by Tedom, can be advantageous for consumers who have the time and flexibility to monitor energy prices.

Analysts predict further decreases in energy prices. Gas prices have already stabilized following a significant increase caused by a strike in Australia, with a gradual decline expected, possibly falling to less than fifty euros per megawatt-hour for delivery next year. Electricity prices, influenced by gas costs and emission allowances, are also anticipated to slightly decrease for deliveries in 2024, potentially approaching a cost of around 120 euros per megawatt-hour.

These reductions in energy prices offer significant savings for households, particularly those using district heating. By exploring different suppliers and contract options, consumers can find the most advantageous rates and maximize their energy bill savings.

Article by Prague Forum