“Electricity and gas prices on stock exchanges fell during the covid epidemic and we managed to buy them more cheaply for our customers. We are thus fulfilling our promise that if prices on the stock exchanges stay lower for a longer period of time, our customers will also benefit, ”said Pavel Cyrani, Deputy Chairman of the Board of Directors and Director of CEZ’s Business and Strategy Division.
According to the company, prices for sole proprietors and small businesses will also fall at the same level as for households from October.
From November, ČEZ ESCO, which supplies electricity and gas to medium-sized and larger companies or the public administration, will also reduce the price to a similar extent. According to CEZ, customers do not have to do anything to obtain a discount. In the case of so-called non-fixed products for an indefinite period, the price of electricity and gas will automatically decrease from 1 October. For fixed-term fixed products, the price is then updated on the date of contract extension.
Savings are also promised by others
Prices will also be reduced by competing E.ON. “We monitor market developments and electricity prices on stock exchanges, and we will also offer discounted electricity prices to clients. We will focus mainly on products with green electricity. When switching to these products, our clients will save ten percent compared to standard price lists from October 1, and new customers will even save up to CZK 3,500. We want to motivate people to buy green energy, which is more environmentally friendly and which we buy primarily from local producers throughout the Czech Republic, “said company spokeswoman Martina Slavíková.
Savings for people are also promised by other companies. Innogy claims that its price offer of electricity for households is more advantageous than the announced reduction of CEZ.
“The vast majority of our customers with electricity consumption in our country have fixed products with a guarantee of price reduction. Thanks to this, we show them a positive development in the annual drop in prices, “said Pavel Grochál, a spokesman for innogy. “If we focus on the price advertised by the largest supplier advertised today, our customer would save 750 crowns in electricity per year under this two-year contract against this price list,” said Centropol spokesman Aleš Pospíšil.
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Bohemia Energy spokeswoman Hana Novotná stated that for all products that are linked to the price of dominant suppliers (such as ČEZ), the company always guarantees a lower price than the dominant supplier.
“We adjust the price and keep the savings. We are currently analyzing prices for other products, “she said. “The days when we introduced price adjustments across the board at some date are a thing of the past. This was the last time this summer, which means that since then, our customers have benefited from summer 2019 prices. In the meantime, other suppliers have increased electricity prices. So now he is returning to where we are all the time, “said Petr Holubec, a spokesman for Prague Energy (PRE).
“PRE is at a lower level compared to the currently announced discount on the standard price list for an indefinite period,” he added.
Analysts expected a drop in prices
Analysts expected a fall in electricity and gas prices for households before the heating season. The reason is the decline in prices on wholesale exchanges. According to them, exactly how much money people save depends logically on what they use the given commodity for.
The price of electricity on the Prague Energy Exchange for 2021, for which traders now stock the most, is currently less than 44 euros (approximately 1180 crowns) per megawatt-hour (MWh), down 16.3 percent year on year. The price of gas there then fell even more significantly year-on-year, by 28 percent to 14 euros (approximately 380 crowns) per MWh.
Some suppliers have already announced a reduction in the price of gas. Its largest supplier in the Czech Republic, innogy, announced in early September that it would reduce its price to all customers by five percent from October. According to the company, a family that heats a house with natural gas and heats water will save about 1,500 crowns a year.
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Some other companies also plan to reduce the price – CEZ announced that the price of its basic product will fall by 11 percent, while MND plans a general reduction in gas prices by about six percent in the upcoming heating season 2020/2021.
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