Pražská plynárenská (Prague Gas Company) has announced a significant reduction in natural gas prices for indefinite-term contracts, thanks to favorable prices in the wholesale gas market. The CEO of Pražská plynárenská, Martin Pacovský, has advised customers to consider fixing their gas prices for a longer duration, taking advantage of the current favorable market conditions.

The wholesale gas market is experiencing stability, with prices currently around 30 euros per megawatt-hour. These prices are expected to fluctuate between 30 and 50 euros. The favorable prices are attributed to the relatively high gas reserves from the previous year and lower-than-expected demand for replenishing storage. This surplus of gas has created an opportunity for Pražská plynárenská to pass on the cost savings to consumers.

Starting from June 1, Pražská plynárenská plans to decrease the cost of natural gas by an average of 23% for indefinite-term contracts. The price of electricity will also see a reduction of approximately 19% from the same date. This price drop is expected to result in significant savings for households and businesses using natural gas. For example, households consuming four megawatt-hours annually for cooking and water heating could save around 2,700 Czech korun (CZK), while families using gas for heating and consuming 11 MWh per year could save approximately 7,400 CZK annually.

Customers affected by the price reduction will receive revised advance payment schedules in the coming weeks. Pacovský recommends that customers consider fixing their gas prices in July or August, depending on their preferences. Despite interventions by the government, the gas market has remained resilient and is functioning as intended.

In addition to the price reduction, residents and businesses in Prague have made impressive efforts to reduce their gas consumption. During the previous heating season, gas consumption on the distribution network of Pražská plynárenská Distribuce decreased by 17%, surpassing the EU member states’ commitment to minimum savings of 15% compared to the five-year average from September to March.

Overall, the current favorable wholesale gas prices present an excellent opportunity for customers to secure lower gas prices for the long term and enjoy substantial cost savings.

Article by Prague Forum