The inhabitants of the Czech Republic could soon experience the same mess that was here two years ago. It is nothing less than a sharp increase in energy prices. It turns out that he is going to do it again, for several different reasons.
Quite a raise
Gas prices are rising again globally as a result of a number of world situations that we cannot influence. But the Czech Republic also made a mess of itself. The state recently bought the highly indebted company Net4Gas, which is now likely to be rehabilitated by all households.
“The Energy Regulatory Office increases the price for the regulated component of the gas invoice. Mainly for shipping. How to keep loss-making, indebted NET4GAS,” economic analyst Lenka Zlámalová wrote about it. From January 1, 2025, ERO will increase the regulated part of the gas price on invoices.
Of course, it will most affect those households that not only cook with gas, but also use it for heating. There can be a difference compared to the current state of going to an increase in the amount of several thousand crowns. The increase is estimated to be 8 to 15%, depending on the distribution area.
Will it be necessary to turn off the heating again? Prices will climb higher.
Will you turn off the heating?
It is supposed to be worst in Prague and in southern Bohemia, i.e. in the areas controlled by Pražská plynárenská and E.ON. The price increase will then be somewhat milder in the area under the GasNet company. But it will definitely be noticeable here as well.
The joke is that you won’t help yourself here at all with fixation. This applies only to the price of the gas itself, not the regulated components of the price and the monthly salary. These parts of the invoice are in the power of the Energy Regulatory Office, and as soon as they increase them, they will be reflected in all final prices.
And that is far from all. From 2027, the obligation to pay for emission allowances will be imposed on gas heating in households. This should make this heating source more expensive for the average household by CZK 5,000.
Read also: Gas boilers are definitely coming to an end. The idea from Brussels really hits the Czechs
So people will have to implement austerity measures again. After all, the WHO organization recently pointed out that it is ideal for a person to heat himself at home at only 18 degrees Celsius. At the same time, this is significantly less than what domestic households are used to, which usually heats to 22 degrees.
Foto: Shutterstock, resources: TZB Info, ERO
Continue Reading
(Opening music plays, and the host, a combination of Jimmy Carr, Rowan Atkinson, Ricky Gervais, and Lee Evans, walks onto the stage with a sarcastic grin)
Host: “Ah, the Czech Republic, a country so lovely, it’s a shame they’re about to freeze their buns off. Again. (chuckles) You see, folks, the energy prices are about to skyrocket, and I’m not talking about a gentle ascension, I’m talking about a full-on, wallet-emptying, hypothermia-inducing rocket ship to the moon. (dramatic music plays)
But fear not, dear Czechs, for it’s not just the global market’s fault. Oh no, your government has kindly decided to throw some gasoline on the fire by buying a debt-ridden company called Net4Gas. Because, you know, what could possibly go wrong with that? (winks)
Economic analyst Lenka Zlámalová said, and I quote, ‘The Energy Regulatory Office increases the price for the regulated component of the gas invoice. Mainly for shipping. How to keep loss-making, indebted NET4GAS.’ Ah, the classic ‘we’re going to make it worse, but don’t worry, it’s for the greater good’ approach. (rolls his eyes)
Now, I know what you’re thinking. ‘Will I have to turn off the heating again?’ Well, the answer is a resounding ‘maybe.’ It depends on where you live, but if you’re in Prague or southern Bohemia, you might as well start wearing thermal underwear to bed. (chuckles)
But don’t worry, it’s not all bad news. The price increase will only be 8 to 15%, which is just a minor dent in your wallet. I mean, who needs to eat out or go on vacation when you can pay more for gas, right? (sarcastic tone)
And if you thought that was the end of it, think again. From 2027, you’ll also have to pay for emission allowances, which will add a lovely CZK 5,000 to your gas bill. Because, you know, the environment is just a luxury we can’t afford. (deadpan)
The WHO recommends heating your home to 18 degrees Celsius, which is just perfect for those who enjoy the sensation of being a human popsicle. (laughs) I mean, who needs comfort when you can save a few crowns, right?
Well, there you have it, folks. The Czech Republic: where the only thing colder than the temperature is the reception from your government. (winks) Stay warm, and remember, it’s not the end of the world… yet.” (outro music plays)
The Czech Republic is bracing itself for a potentially crippling energy price hike, reminiscent of the crisis that struck the country two years ago. A perfect storm of global events, coupled with the government’s recent acquisition of the heavily indebted Net4Gas company, is set to drive up energy costs for households across the nation.
A Significant Price Increase Looms
Global gas prices are surging due to a multitude of factors beyond the Czech Republic’s control, including geopolitical tensions, supply chain disruptions, and increasing demand. However, the country’s own actions have also contributed to the impending crisis. The state’s purchase of Net4Gas, a company struggling with significant debt, is likely to be financed by households through increased energy bills.
“The Energy Regulatory Office is set to raise the regulated component of gas invoices, primarily to cover the costs of shipping and to mitigate the losses incurred by the ailing NET4GAS,” explains economic analyst Lenka Zlámalová. The price increase, scheduled to take effect on January 1, 2025, will predominantly affect households that rely on gas for both cooking and heating, with potential price hikes ranging from 8 to 15% depending on the distribution area.
The impending price surge is expected to have a disproportionate impact on Prague and southern Bohemia, where Pražská plynárenská and E.ON operate, with GasNet customers facing slightly milder price increases. However, even households in the latter region can expect a noticeable hike in their energy bills.
The prospect of higher energy costs has raised concerns that households may be forced to drastically reduce their energy consumption, with the World Health Organization (WHO) recommending indoor temperatures of no more than 18 degrees Celsius – a significant departure from the typical 22 degrees maintained in Czech homes.
Will Households Be Forced to Turn Down the Heat?
The news is particularly concerning for households that have opted for fixed-rate contracts, as these only regulate the price of gas itself and not the regulated components of the invoice or monthly charges, which are controlled by the Energy Regulatory Office. As a result, households can expect their energy bills to increase regardless of any fixed-rate agreements.
Moreover, from 2027, the Czech Republic will introduce an obligation to purchase emission allowances for gas heating in households, which is estimated to add an additional CZK 5,000 to the average household’s energy bill. This move is aimed at reducing the country’s carbon footprint, but it will undoubtedly put a further strain on household finances.
In light of these developments, households are likely to be forced to adopt austerity measures to cope with the escalating energy costs. As the WHO’s guidelines suggest, this may involve reducing indoor temperatures, but households may need to explore additional measures to mitigate the financial impact of the impending price hikes.
