Energy Experts Say Now is the Time to Lock in Electricity Prices
According to Lukáš Kaňok, an energy expert at Kalkúlátor.cz, the window for suppliers to resell purchased energy at a favorable price is closing.The stock exchange currently offers electricity for 2,600 crowns (without tax), while suppliers are listing prices around 2,300 crowns, including their margin. Kaňok warns, “This will not come back. Those who do not take advantage of this offer will needlessly pay more for electricity than necessary.”
Tomáš Vrňák, an analyst at Ušetřeno.cz, believes wholesale electricity and gas prices for households may see a slight dip, but the difference will be minimal. “No notable decrease is likely anymore,” he stated.
Jiří Gavor from ENA company suggests that waiting for better deals is no longer advisable, though limited marketing campaigns with slightly lower prices may appear. He anticipates potential price reductions on indefinite contracts after the New Year, but these will be more expensive than fixed-price contracts.
Kaňok adds that any price adjustments will likely target new customers, with existing customers continuing to pay more.
Vrňák recommends consumers consider fixed-price contracts for significant savings, suggesting a two- or three-year term as a reasonable solution.
Savings in Thousands Per Year
Martin Wolf from Prague recently switched electricity suppliers and will save tens of percent on his monthly bill. Heating his home with an electric boiler, Wolf’s family previously paid over 3,400 crowns monthly. By comparing offers, he’s now switching to a supplier with a rate under 2,000 crowns per month, saving nearly 18,000 crowns annually.
Kaňok emphasizes that comparing energy prices is simple and can save up to a third on payments. Consumers can utilize online comparators, both commercial and those available on the energy Regulatory Office website.
Czech Electricity and Gas Prices: Changes Coming in 2024
Czech households and businesses can expect changes to their energy bills in the new year. The Energy Regulatory Office (ERO) has proposed a 2.7 percent increase in the regulated component of electricity prices and a 4.7 percent increase for gas, effective January 2024. However,overall electricity costs for most consumers are projected to decrease due to a planned shift in how renewable energy support fees are funded.
Karel Havlíček, the likely next Minister of Industry and Trade, intends to fully transfer the fees currently paid by households and companies through electricity prices to the state budget. This move is expected to lower total electricity payments by up to 10 percent. For a typical household consuming 3,000 kilowatt-hours annually, this could translate to savings of approximately 1,800 Czech crowns per year.
Conversely, gas prices will likely rise due to the increase in regulated payments, which do not include support for renewable sources. The increase could amount to up to 100 crowns per year for high-consumption users.
Changing Suppliers: What You Need to Know
If you are considering switching energy suppliers, the terms of your current contract matter.
* Open-ended contracts: Customers with open-ended contracts can provide notice to terminate at any time, though a three-month notice period applies. A notice given now would mean switching suppliers in March.
* Fixed-term contracts: These contracts are more complex. Eduarda Hekšová, director of the consumer organization dTest, explains that fixed-term contracts frequently enough automatically renew. To avoid automatic renewal, customers must terminate the contract at least twenty days before the renewal date.
* Early Termination Penalties: Terminating a fixed-term contract before its expiration typically incurs a penalty of thousands of crowns.
* Supplier-Initiated Changes: Consumers can terminate a fixed-term contract without penalty if the supplier unilaterally increases prices or changes contract conditions. Suppliers must notify customers of these changes at least thirty days before they take effect, giving consumers ten days to terminate the contract without penalty.
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