Pražská energetika will offer fixed tariffs with energy prices below the government ceiling

Pražská energetika will offer fixed tariffs with energy prices below the government ceiling

Prague Energy will offer fixed tariffs with energy prices below the government ceiling

Queues in front of the customer center of Pražská energetika (PRE) and Pražská plynárenská in Jungmannova street in Prague, October 11, 2021.

Prague – Pražská energetika (PRE ) will offer new sub-ceiling tariffs from March 15. The prices of electricity and gas in them will be several hundred crowns lower compared to the price ceiling, new and existing customers will be able to use them. The condition is fixation until the end of 2024. Company spokesman Karel Hanzelka told ČTK today. In response to falling energy prices on the market, other suppliers also began to reduce prices below the government maximum.

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Since the beginning of the year, most energy suppliers have offered tariffs to new customers with prices based on the government's price ceiling. For this year, this amounts to 5,000 crowns for one megawatt hour (MWh) of electricity without VAT and 2,500 crowns for one MWh of gas. Distribution fees need to be added to this. The so-called ceilings apply to households, companies and public institutions.

The price of electricity will be CZK 4,740 per MWh without VAT at the most common distribution rate D02d. For customers who use electricity to heat water and heat, one MWh will cost CZK 4,640 in the high tariff, and CZK 4,440 in the low tariff. PRE will then offer gas at a price of 420 crowns per MWh below the price ceiling. However, the condition for using sub-ceiling prices will be a nearly two-year fixation until the end of next year.

“The new offer targets a conservative customer who wants to be sure of a guaranteed price for a certain period. Also, customers who fear a possible further increase in energy prices,” the company said. At the same time, PRE does not rule out another price drop in the future. “If the energy market continues to move in a positive direction and there is a further drop in prices, as many analysts expect, PRE will prepare additional products for customers with an appropriate price,” added the spokesperson.

Energy prices under the government set other suppliers have already started offering limits in recent weeks. For example, E.ON reduced its clients' electricity against the ceiling by six percent and gas by eight percent without a long-term commitment. Innogy has also reduced gas prices for some clients without obligation, by approximately CZK 240 per MWh, and the company also offers electricity at below-the-ceiling prices.

Centropol and MND have also announced price reductions to existing customers. ČEZ also introduced the new tariff. Energy prices will gradually decrease, but the condition is a long-term contract. From May, Pražská plynárenská will also reduce its selling prices of natural gas and electricity under the limit set by the government.

In recent weeks, the wholesale price of electricity has fallen to 155 euros (about 3,670 CZK) per MWh without VAT. For gas, it dropped to 60 euros (roughly 1,420 CZK) per MWh. Last summer, the prices of both commodities were significantly above the limit set by the government.