The innogy company will lower electricity prices below the price ceiling from March, subject to a fixed price

The innogy company will lower electricity prices below the price ceiling from March, subject to a fixed price


The logo on the innogy building in Ostrava in a picture taken on April 5, 2018.

Prague – Energy company innogy will lower electricity prices below the price ceiling from the beginning of March. The price for one megawatt hour (MWh) will be 250 crowns below the ceiling, but the condition is the conclusion of a contract for 15 months. The company innogy informed about it. It has already reduced gas prices. In response to falling energy prices on the market, other suppliers also began to reduce prices below the government maximum.

Advertisement'; }

Innogy currently supplies gas and electricity to 1.8 million customers. It is the electricity supplier for more than 600,000 of them, which makes innoga the fourth largest electricity supplier in the Czech Republic.

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 6,000 crowns for one megawatt hour (MWh) of electricity including VAT and 3,000 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.

“This way, customers will be under the price ceiling by two hundred and fifty crowns. The offer is valid for new and our existing customers, whose fixed contract is currently ending and who signed the contract from March 1,” said David Konvalina, director of innogy for retail and marketing.

Innogy is also preparing an offer of sub-ceiling electricity prices for its other customers whose contracts will end in the near future. The new prices and conditions of the so-called extensions will be presented in the coming days.

Earlier, innogy also cut gas supplies to 320,000 of its existing customers. A discount of CZK 340 per MWh applies from the beginning of February. According to the company, customers who heat their family home with gas save about 3,000 crowns per year on average. For clients who use gas for cooking, the discount is 34 percent.

Other suppliers have already started offering energy prices below the limits set by the government 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 also reduced gas prices for some clients without fixing, by around 240 CZK per MWh. Centropol or 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.