Free English-language service set to help foreigners navigate the Czech energy crisis

When Bohemia Energy announced that it would cease operations in mid-October, shockwaves rippled through the Czech business world. The company provided energy for around 900,000 people in the country, and its unexpected bankruptcy has now led to customers being switched to emergency “suppliers of last resort” to ensure homes remain heated and the lights stay on.

While this system means customers shouldn’t worry about losing power, many run the risk of losing significant amounts of money in disadvantageous temporary deals with suppliers of last resort. To help people protect themselves, a non-profit organization has now been set up helping people switch to better value permanent suppliers.

The Energie v pohodě project is being spearheaded by Pavel Ciprys, with 13 years in the energy industry, and Jakub Makalouš, the Founder and CEO of Prague’s Wannado Festival. They were motivated to provide assistance to those seeking better deals as they became aware of the general lack of knowledge which most have about the energy sector, which is complex even under normal circumstances. They set up the non-profit organization to link former Bohemia Energy customers with partner energy suppliers ČEZ, Innogy and E.ON.

“Knowledge about the energy industry is not high, so lots of people need help to know what to do, and what their options are. This is an unprecedented situation, no one expected it. It has come about as a result of a combination of factors affecting the world and the EU, leaving hundreds of thousands of people in need of a new supplier,” Makalouš told Expats.cz.

While the automatic switch to suppliers of last resort has been beneficial for preventing panic resulting from Bohemia Energy’s collapse, in the long-term it could see customers lose significant amounts of money.

According to Energie v pohodě, electricity and gas from last resort suppliers cost around CZK 5,400 and CZK 3,800 respectively (per Mwh), while switching to permanent suppliers can see prices fall to around CZK 3,400 and CZK 1,550. For such reasons, advice to switch to a permanent supplier as soon as possible has also come from the government. In a video posted on his Facebook page, outgoing Prime Minister Andrej Babiš urged those affected by Bohemia Energy’s bankruptcy to find a new permanent supplier as soon as possible.

"Our service is completely free of charge, and we are helping expats find a new contract with major energy distributors. We can provide assistance in English either at our office in Žižkov, or online," said Makalouš.

Former Bohemia Energy customers don’t need to worry about the lights switching off; but they should be wary of paying significantly more than necessary to suppliers of last resort. Switching to a new long-term supplier sooner rather than later is likely to save them money, and it will also provide greater peace of mind in the long term by putting the complications caused by Bohemia Energy’s bankruptcy firmly in the past.