Energy supplier ČEZ has announced a price increase for customers on fixed-rate contracts, citing persistent volatility in wholesale energy markets fueled by the ongoing Middle East conflict. According to company spokesperson Roman Gazdík, the adjustment affects a small percentage of clients whose fixed-term agreements are expiring, while the provider’s primary variable-rate tariffs remain unchanged.
Why are energy prices rising despite market fluctuations?
While global energy markets have seen periods of calm, wholesale prices have failed to return to pre-conflict levels. According to ČEZ, the decision to adjust rates follows a long period where the company absorbed costs to keep prices stable. However, the sustained nature of the Middle East crisis has kept wholesale costs high, forcing the provider to pass some of these costs to consumers on specific fixed products.
This trend is not isolated to a single supplier. Since the spring, firms including Innogy, Pražská plynárenská, MND, E.ON, and Pražská energetika have also raised prices on their fixed-term energy offerings. These adjustments generally range in the lower hundreds of crowns per megawatt-hour (MWh).
Natural gas serves as a “marginal source” for electricity production in Europe. This means that when the price of gas rises—often due to geopolitical instability—the cost of generating electricity typically climbs in tandem.
How do these price adjustments affect customer bills?
The impact of the price hike varies depending on the specific product and contract length. For ČEZ customers on “Bez starostí” (Without Worries) tariffs, electricity prices with one- and two-year commitments are increasing by six percent. This results in a price of 3,900 CZK per MWh (including VAT) for two-year contracts, an increase of 180 CZK. Three-year tariffs will see a seven percent rise, reaching 3,630 CZK per MWh.
Gas prices are facing a steeper climb. Products with one- and two-year commitments will increase by seventeen percent, while three-year tariffs will rise by nineteen percent. For a two-year gas contract, this represents an increase of 240 CZK, bringing the rate to 1,650 CZK per MWh including VAT.
Will all customers see higher costs?
Not every customer with an expiring fixed-rate contract will face a price increase. According to ČEZ data, approximately a minority of clients whose fixed-term agreements are ending will actually see a lower price than they paid previously. This is because the company lowered its fixed-rate price lists several times during the duration of those specific contracts.
| Tariff Type | Change |
|---|---|
| Electricity (1-2 Year Fixed) | six percent |
| Electricity (3 Year Fixed) | seven percent |
| Gas (1-2 Year Fixed) | seventeen percent |
| Gas (3 Year Fixed) | nineteen percent |
Before renewing a fixed-rate contract, compare your current rate against the supplier’s variable-rate options. As noted by ČEZ, their main indefinitely-termed tariff currently remains unchanged, which may offer a different risk profile compared to new fixed-term commitments.
Frequently Asked Questions
- Are all ČEZ customers affected by these price increases?
No. The changes apply only to a small percentage of customers whose fixed-term contracts are currently expiring. - Why are gas prices increasing more than electricity?
Gas prices are more directly sensitive to the supply chain disruptions and geopolitical tensions in the Middle East, which have driven market prices up by tens of percent. - Will my indefinitely-termed tariff price change?
According to spokesperson Roman Gazdík, ČEZ is not planning changes to its main indefinitely-termed electricity product at this time.
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