More Than Half of Czech Households Could Be Overpaying for Electricity
Prague Morning
A large number of Czech households may be paying more for electricity than necessary because they are using a distribution tariff that does not match their actual consumption.
A new analysis estimates that switching to a more suitable tariff could save households more than CZK 1.3 billion a year in total.
The analysis was conducted by energy company bezDodavatele.
The company examined electricity consumption at 1,132 household consumption points using the two most common household distribution tariffs, D01d and D02d.
According to data from the Energy Regulatory Office (ERÚ), D01d and D02d are used by around 65 percent of the approximately 6.5 million household consumption points in the Czech Republic.
The analysis found that changing the distribution tariff could reduce electricity costs for more than half of the households examined.
Many households never reconsider their tariff
One reason is that households often keep the same tariff for years without checking whether it still suits their electricity consumption.
A tariff that made sense when a household first connected to the electricity grid may no longer be the cheapest option after its consumption patterns have changed. Many consumers, however, do not regularly review the distribution tariff listed on their electricity bill.
According to the analysis, 53 percent of the households examined could have benefited from a different tariff. Their average potential saving was CZK 728 per year.
For some households, the difference was considerably larger, with potential savings reaching several thousand crowns annually.
Prague households show the highest potential
The analysis found differences between the country’s main electricity distribution areas.
In Prague, where electricity is distributed by PRE, changing the tariff could have been beneficial for 68 percent of the households included in the study. That was the highest proportion recorded among the three distribution zones.
In the EG.D distribution area, which covers much of southern Bohemia and Moravia as well as parts of the Vysočina, Zlín and Olomouc regions, the figure was 51.5 percent.
The lowest share was recorded in the ČEZ distribution area, where 46.3 percent of the households analyzed could potentially benefit from a different tariff.
The picture changes slightly when looking at the size of the potential savings. Although Prague had the highest proportion of households that could benefit from a tariff change, the largest average annual saving was recorded in the ČEZ Distribuce area, at CZK 833 per household.
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