Household bills to soar as energy companies announce price hikes

Several Czech companies have announced upcoming price increases for gas and electricity in the following months. Staff

Written by Staff Published on 13.07.2022 12:36:00 (updated on 13.07.2022) Reading time: 3 minutes

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.

Have you already felt a soaring energy price hike?

Yes, a lot! 78 %
Yes, slightly. 8 %
No, not significantly. 11 %
I don't know. 3 %
137 readers voted on this poll. Voting is open

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.

What can you do to save energy?

  • Appliances used for heating are the biggest eaters of energy. An analysis by Seznam Zprávy recently found that reducing room temperatures by 1.5°C usually saves around 9 percent of the cost. In a house with an area of 120 square meters, which consumes around 14.4 MWh per year for heating, reducing the temperature in all rooms by 1.5°C can save you over CZK 4,200 a year.
  • Another energy-saving tip is to reduce the water temperature in your boiler. For households with an electric boiler, reducing temperatures from 60°C to 50°C can save almost CZK 5,000 a year.
  • Other small steps that can make a big difference include checking the temperature in your refrigerator. “Set +4°C on the refrigerator thermostat and -18°C in the freezer. A temperature only two degrees lower can mean higher consumption by up to 15 percent,” official advice from ČEZ states.
  • On average, replacing classic light bulbs with LED bulbs can save thousands of crowns per year; Seznam’s calculation found that eight new LED bulbs result in savings of around CZK 2,300 per year.
  • A final tip is fully unplugging appliances when they’re not being used. A small amount of energy is still being used when appliances are left in “standby mode,” adding up to thousands of crowns of additional costs a year for most households.
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