Aug 31, 2023

Energy Company E.ON Will Lower the Gas Prices by 16%

E.ON energy company is set to provide gas discounts to all its existing customers without a fixed price starting from September. This move will impact around 140,000 clients.

Their prices will decrease by 16 percent compared to the current rates and will drop by up to 25 percent in comparison to the government’s imposed price cap.

Similar trends are observed with other energy suppliers in the Czech Republic, as they gradually reduce their energy prices. In response to the price hikes in wholesale exchanges, the Czech government established price limits for this year at CZK 5,000 per megawatt-hour (MWh) for electricity excluding VAT and CZK 2,500 per MWh for gas.

While suppliers initially offered these prices at the beginning of the year, they started introducing new, more profitable products throughout the year as energy costs on the exchange decreased.

For E.ON’s customers without fixed plans, starting September, the gas price will be CZK 2,321 per megawatt-hour (MWh) including VAT. This translates to savings of CZK 436 per MWh compared to current rates and a significant reduction of CZK 704 per MWh compared to the ongoing price caps.

Radek Fišer, Head of Household Energy Sales and Proxy of E.ON Energie, noted that advance payments for these customers will be recalculated, and any potential reductions will be adjusted in the next billing cycle or communicated via a new advance payment schedule through the Energie24 portal. Notifications about the discount will be sent to customers through email or mail.

E.ON also plans to engage with customers under long-term commitments, a group that currently comprises several thousand clients. Fišer mentioned that during autumn, E.ON intends to offer these customers a new two-year fixed product, priced over 20 percent below the current electricity price ceiling and over 30 percent lower for gas. This offering aligns with the product available to other customers seeking to lock in their prices.

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Other suppliers such as innogy, Centropol, Pražská plynárenská, and more also introduced price reductions below the government’s price ceiling during the early months of the year.

Analysts foresee a continued decline in energy prices for consumers in the weeks ahead. Although the current fluctuations in the wholesale market might not immediately impact this, larger suppliers tend to base their pricing decisions on long-term market trends, which have been favorable throughout the year. This perspective has been shared by analysts in recent discussions with ČTK.

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