Czech households to save on electricity bills next year

Photo: European Commission

Czech consumers can look forward to lower electricity bills in 2015. The country’s Energy Regulatory Office on Wednesday announced a 1.2 percent drop in the regulated price of electricity for households which should save consumers hundreds, if not thousands, of crowns annually. Although the regulated component only accounts for 60 percent of the final electricity price, most suppliers have confirmed that the price of electricity will drop.

Photo: European Commission
According to the Energy Regulatory Office the regulated price of electricity for households in the Czech Republic will drop by approximately 1.2 percent next year. The regulated price of electricity, which is comprised mainly of the fee for transmission and distribution and a contribution to renewable energy sources, will decrease thanks to a fall in market prices of baseload electricity.

According to the Energy Regulatory Office the change of regulated prices for individual customers will differ depending on the region where the client is connected to the electricity grid. The difference can be caused by a selected distribution rate or the amount of electricity consumed. The final price will also be affected by the choice of the supplier of baseload electricity, which influences the unregulated component of the price.

The regulated component accounts for about 60 percent of the final electricity price which is set by suppliers. Most of the country’s big suppliers reacted to the news on Thursday by confirming that that the price of electricity would drop or at the worst remain stable.

The company Pražská energetika said it was counting on a drop of 2.5 percent for households next year with a special offer option by which the price could drop by up to 5.5 percent. ČEZ and E.ON are also presenting special offers under which people can save up to ten percent on their electricity bills.

On the other hand, the 1.5 million households that use gas for heating or cooking are less happy. Gas prices are expected to rise by between 1.18 and 4.74 percent, next year, according to the Energy Regulatory Office. The final price will depend on the overall gas consumption of a household but it will prove most expensive for those who only use gas for cooking. The regulated component of the price of gas will increase by about 7.4 percent next year. This component accounts for 23.4 percent of the total gas supply price.