Czech energy suppliers announce price cuts for 2024: Will the savings reach your wallet?

Czechia’s largest electricity supplier ČEZ has announced in a press release it will reduce electricity and gas prices for nearly 2 million customers starting next year. Other large companies such as E.ON are following suit, although it’s likely that overall energy bills for Czech consumers will increase in 2024 due to the state’s planned halting of electricity and gas payment contributions.

Households with non-fixed-term contracts will particularly benefit from ČEZ’s cuts, paying over a fifth less for electricity and almost 30 percent less for gas. ČEZ has confirmed that the discount will be applied automatically to existing customers, resulting in savings of over CZK 1,000 per megawatt-hour (MWh) for electricity and over CZK 700 for gas.

For contrast, a little over a year ago – when energy costs skyrocketed due to the Russia-Ukraine war – companies charged about CZK 6,000 per 1 MWh hour of electricity and CZK 3,000 per 1 MWh of gas.

ČEZ is not the only supplier that is reducing its prices. Moravské naftové doly, E.ON, innogy, Pražská energetika, Pražská plynárenská, and Centropol have all gradually reduced energy costs over the past few months, and will continue doing so.

Despite these discounts, however, consumers may face higher electricity prices next year due to adjustments in state-controlled distribution fees and the removal of state contributions for renewable energy sources. 

Last month, Prime Minister Petr Fiala emphasized that the government can no longer subsidize energy prices due to the absence of “extraordinary circumstances.” He expects the impact of this change on households and businesses to be manageable and partially offset by falling electricity prices. Minister of Industry and Trade Jozef Síkela previously admitted that the price increase could be roughly 10 percent.

The fall in suppliers’ prices will come as welcome news to consumers in the face of anticipated spikes in overall energy bills next year.