Energy supplier E.ON will increase prices from January. Standard price lists for electricity will increase by an average of 17 percent, for gas by 16 percent. Rising prices will not affect fixed contracts. The reason is the high purchase prices of energy on stock exchanges.
In addition to E.ON, other energy suppliers are also becoming more expensive. According to E.ON spokeswoman Martina Slavíková, prices on stock exchanges have remained at record, extremely high values for a very long time.
“The wholesale price of electricity we buy for our customers on stock exchanges has even more than 3.5-fold in the last year, but thanks to our responsible approach to purchasing electricity and gas, when we buy energy for our regular customers continuously and in advance, we are in E. Unlike many other suppliers, the ONs have not yet had to project this year’s jump in prices into consumer prices, “said Slavíková.
For example, gas prices for customers on standard E.ON products last increased in November 2018.
According to E.ON, a family that lives in an apartment and has electricity for normal consumption and takes about 1.5 megawatt-hours (MWh) a year will pay about 50 crowns more per month than in January. Households with higher consumption, which shine with electricity and at the same time use it for water heating (with a consumption of up to five MWh), pay about 300 crowns a month.
“Of course, the price increase does not apply to our clients who have fixed price products, the agreed price applies there for the entire duration of the contract. customers who do not have fixed prices will be interested in switching to another product that we have on offer, they can always contact us with this request, “said Slavíková.
According to Slavíková, the reason for high energy prices is the increase in the prices of emission allowances, which currently range at 80 euros (about 2,000 CZK) per tonne of CO2, the second and more serious reason is the situation regarding natural gas supplies to the EU. This is problematic for several reasons.
Certification of the Nord Stream 2 gas pipeline from Russia to Germany is in sight, cold weather is expected in the winter, gas tanks were not filled to 100 percent of their capacity during the summer, but tensions at the Russian-Ukrainian border or non-increasing natural gas flow from Russia to the EU in traditional ways.
“All of this is ultimately an incentive for natural gas and electricity prices to reach record levels,” Slavíková said. At the beginning of this year, the price of electricity for 2022 reached the level of EUR 53 (CZK 1,335) per MWh, now it is around EUR 208 (CZK 5,240) per MWh.
E.ON is not the only supplier that increases prices. Pražská teplárenská has increased heat prices for its customers since 1 December. The average Prague household pays CZK 250 to 350 more per month for heat. CEZ will increase the price of electricity supplies by about a third as of January 1. The increase does not apply to customers who have a contractually fixed price. Households will pay an average of 250 crowns a month.
On the other hand, Pražská energetika (PRE) does not plan to raise prices from the New Year, the last price increase took place on September 1 this year, the increase was by seven percent, which is CZK 70 per month for a regular Prague family. At the end of the year, Pražská plynárenská will increase the price of gas in the basic price list by an average of 7.3 percent. Customers with fixed prices will not be affected by the price adjustment.