Thursday, 24 April 2014

Energy prices for households to rise 2.4% in 2013

29 November 2012

Prague, Nov 28 (CTK) - Prices of electricity for Czech households will be 2.4 percent higher on average and regulated price of gas will increase by an average 4.13 percent next year, the Energy Regulatory Office (ERU) said yesterday.

Prices will differ for individual Czech regions, ERU chairwoman Alena Vitaskova said.

Households will pay up to Kc1,900 more for electricity next year and gas costs will be up to Kc1,200 higher, the ERU said.

Prazska energetika (PRE) is going to increase prices by 3.7 percent, which would be the biggest growth, the ERU estimated.

E.ON, operating in the Jihocesky and Jihomoravsky regions in the south of Bohemia and Moravia, is expected to raise prices by 2.4 percent and energy group CEZ by 2.1 percent.

CEZ spokeswoman Barbora Pulpanova said CEZ will make public the price list on December 1.

E.ON spokesman Vladimir Vacha said the firm will publish prices of individual products and price lists on its website on Friday. "We have to publish the price lists by November 30 at the latest," Vacha told CTK.

PRE spokesman Petr Holubec said the ERU's calculation of the impact of prices on households was not correct. PRE will cut the price of baseload electricity more than estimated by the ERU and so the price hike will be lower. PRE's price list will be released in the next few days.

The regulated price of gas, making up around one-fifth of the total price, will go up by 4.13 percent. It is, however, difficult to estimate the total price because the price of the commodity itself is based on the pricing policy of individual suppliers. The ERU estimates a growth of around 2.75 percent.

Small enterprises will see a power price hike of 3.1 percent on average.

The ERU said it is the regulated part of the electricity price that will rise. It accounts for 55.3 percent of the total price and includes, for instance, support for renewable energy. The regulated price will grow by 9.4 percent next year. The rise will be partly offset by a lower price of baseload electricity including trade margins.

The ERU pointed out that clients can influence the final price of electricity through a choice of supplier. Distributors charge different non-regulated prices.

Cyrrus analyst Marek Hatlapatka said the ERU's price decision was in line with expectations.

Support for renewable energy has a major impact on the price increase that will reflect growing production of photovoltaic facilities, biogas stations and facilities burning biomass, the ERU said.

The price to cover the cost of renewable energy will rise by 39.1 percent on the year to Kc583 per megawatt hour next year.

Vitaskova said the price is based on the assumption that the government approves state support for renewable energy sources at Kc11.7bn, that is the same amount as this year.

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