Household bills to soar as energy companies announce price hikes

Energy costs have been on the rise with little relief recently. Household electricity bills are expected to hit new highs in the fall as more energy companies warn of an increase in energy prices.

Energy company E.ON will raise energy prices from September: regular customers will pay roughly 15 percent more of the total price they have paid for electricity so far. For gas, there is an increase of 50 percent of the total price. 

The increase will not affect customers with a valid fixed price, company spokeswoman Martina Slavíková told ČTK. Other suppliers such as ČEZ or PRE are also raising the price of energy.

According to Slavíková, a household with lower consumption, which uses electricity for common purposes such as lighting or typical electrical appliances and has an annual consumption of approximately 1.5 MWh, will pay approximately CZK 110 more per month than before. 

With the new prices, E.ON will also adjust the amount of advance payments. "Roughly 80 percent of our customers already have their deposits set up in such a way that they can cover even the planned increase in price lists. For the remaining fifth of clients, we will have to increase the deposits from September," Jan Zápotočný, vice chairman of the board of E.ON Energie, said.

The long-term unfavorable situation on the energy exchanges, where it buys electricity and natural gas for its customers, forced the company to raise prices. These prices have been rising continuously for more than a year and a half. "The increase in these prices is extreme," E.ON said.

Russia's war in Ukraine and the instability of gas supplies to Europe are the main reasons for the increase in gas prices on the exchanges. Gas prices also indirectly affect electricity prices, as well as increasing the prices of emission allowances.

In a recent televised address, Prime Minister Petr Fiala warned of an upcoming shocking energy price increase and assured Czech residents that the government "will not let anyone down."

He called on people not to hesitate to apply for individual support in the form of housing benefit.

ČEZ raised the price of electricity in the most common tariff for households (D02d) in a product fixed for three years already from July 1. It is raising prices again from Aug. 1. One MWh now costs CZK 6,025, and as of August it will be CZK 7,464, an increase of more than a fifth. For a product with a two-year fixation, the price will increase month on month by 7 percent to CZK 7,501.

From Aug. 1, Pražská energetika is increasing the price of the non-fixed PRE Current Nefix product from the original CZK 4,879 to CZK 7,505 per MWh, i.e. roughly by half. 

Even Pražská plynárenská cannot rule out a price increase. "Given the development of the wholesale market, price increases in the future cannot be ruled out. At this moment, however, it is still at the stage of analysis and considerations," spokesman Miroslav Vránek told CTK.

A number of suppliers have raised prices since July 1. For example, Innogy increased the price of gas fixed for three years by CZK 100 to CZK 2,510 per MWh. Centropol also became more expensive. As of July 1, the price of the Mini product fixed for three years increased from the original CZK 5,205 to CZK 6,381.