Czechs Face EU’s Highest Electricity Prices Amid Export Surge

The price of electricity for households in the Czech Republic has risen sharply, even though the nation is one of Europe’s largest electricity exporters.

According to Eurostat, the cost reached €0.321 per kilowatt-hour in purchasing power parity (PPP) terms during the first half of last year. This marks an 85% increase compared to the same period in 2021 for a household with average consumption levels.

Czech Prices Outpace Regional Neighbors

The steep price hikes in the Czech Republic contrast starkly with trends in other Visegrad Four (V4) countries, where electricity costs have remained relatively stable, states Lukáš Kovanda Chief Economist at Trinity Bank.

Slovak households paid an average of €0.1543 per kilowatt-hour, less than half of what Czech households were charged. Slovakia saw a modest increase of around 12% over the same period.

Polish households fared even better, paying €0.1531 per kilowatt-hour, with a surprising 2% price reduction compared to the first half of 2021.

Hungary boasts the lowest electricity prices not only in the V4 but also across the EU, at just €0.1234 per kilowatt-hour, a mere 1% increase over three years.

A Sharp Shift in Czech Pricing Trends

Electricity prices in the Czech Republic were once on par with its V4 peers when adjusted for purchasing power. However, a dramatic turning point occurred around late 2021 and early 2022. Czech electricity prices began climbing sharply, eventually surpassing those of neighboring countries. By comparison, Hungarian electricity prices remain 2.6 times cheaper.

This disparity is even more puzzling given the Czech Republic’s status as a leading electricity exporter. Between the first half of 2021 and the same period in 2022, the country exported 35.4 terawatt-hours (TWh) of electricity, according to Montel data. Slovakia, another net exporter, managed just 3.6 TWh in the same period.

Poland and Hungary, by contrast, are net importers of electricity. Poland imported 6.4 TWh, while Hungary’s imports reached 41.8 TWh.

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