Electricity prices in 2024. What kind of price increases do you expect?

by worldysnews
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· Since January we have been faced with a significant increase in tariffs for electricity distribution, each megawatt hour now costs 1,200 crowns more

· For families with average consumption the rent will cost only CZK 500 more per month. But those who heat with electricity will pay thousands more

· Differences between distributions, i.e. between regions, are increasing. The cheapest is Prague

· Overall, our distribution fees increased by an average of 68%

The experts at Kalkulátor.cz have prepared a clear tariff comparison for the most common D02d tariff. Families with this tariff use electricity for common household appliances such as television or computers, for cooking, for lighting, but also for work in the garden or garage. In detail they focused on the individual components of the tariffs, including consumer prices, system services, the electricity tax and the tariffs for the purchase of electricity from renewable sources. They also explain how these changes affect overall electricity costs and how this affects households with different consumption.

Consumer price (CZK / MWh)

We pay the utility to prepare and maintain the grid so we can consume electricity and still have enough for us. The price is for each MWh of electricity consumed. “Comparing the data, it is clear that already in 2023 the inhabitants of the capital paid much less than the rest of the republic. And for the people of Prague this tax also became the cheapest, only 6%. Those who live in Central Bohemia, in northern Bohemia or northern Moravia, will pay 25% more,” says Lukáš Kaňok, director of the energy sector of the company Kalkulátor.cz, and adds: “For every 1 MWh of electricity consumed they will pay almost CZK 500. Customers who have a collection point in the EON distribution area will pay 21% more. Their price will therefore increase by CZK 439 per 1 MWh of electricity consumed. In the territory managed by ČEZ it amounts to 21% more, or CZK 490.

Price of system services (CZK / MWh)

This tax is paid equally by every customer in the Czech Republic, regardless of the distribution area. Here too we pay for each MWh of electricity consumed. In 2023 it was 137 CZK, in 2024 it will be 258 CZK. The difference is therefore 120 CZK (87%).

Electricity tax (CZK/MWh)

The only charge that hasn’t changed. For all distribution territories and all distribution tariffs the same tariff applies for both 2023 and 2024, i.e. 34 CZK/MWh.

Price to support the purchase of electricity (CZK / MWh)

A fee known as POZE which was not charged in 2023. Now it is returning and is the same for all distribution zones at 599 CZK/MWh. The new collection of this tax represents the largest share of the current increase in distribution tax prices,” estimates Lukáš Kaňok, director of the energy section of Kalkulátor.cz.

Price for market operator activities (CZK/month)

Regardless of the monthly volume of electricity consumed, we pay a fee for the operator’s activity. So we pay for the fact that there is neither too much nor too little current in the network. Or, for example, when there is a blackout in the power plant, or, on the contrary, a factory with large consumption comes into operation, everything in the house is still turned on and you don’t notice the difference. The 21% price increase is the same for all distribution territories. This is due to the fact that in the whole of the Czech Republic there is only one market operator. On the contrary, in the Czech Republic we have 3 distributors, which have different costs, which we pay in the form of commissions indicated above. However, the total price increase amounts to only 1 CZK per month, or 12 CZK per year. This fee played almost no role in 2023 and, even after a 21% increase this year, has not changed.

Circuit breaker fee (CZK/month)

We pay the circuit breaker fee based on the appliances we have installed in our home and the amount of power they need to run. In total we have 15 different tariffs for circuit breakers, the most common tariff for the D02d tariff is 3x16A for which this comparison table applies:

Even with this tariff it is clear that “Prague is good” and will continue to be so. The price increase in the PRE distribution area is only 15 CZK per month, i.e. 180 CZK per year. However, those who live in an address in the ČEZ distribution zone will have to pay 25% more for this type of switch (and this distribution tariff), i.e. 31 CZK per month, 372 CZK more per year.

For completeness: the increase in % is almost the same regardless of the switch you have at home. So, if you have a ČEZ distributor, the tariff for the circuit breaker will be 25% higher, even if you have a 3×15 or 3x50A type.

Overall, our distribution fees increased by an average of 68%.

“From the above it can be seen that the renewal of tariffs for green electricity plays an important part in this price increase. For 1 MWh of electricity consumed we will once again pay CZK 599 each. In second place is the highest price for distribution (electrical transport as such). In Prague we will pay 100 crowns more, in the rest of the country we will pay 440 to 500 crowns more”, says Lukáš Kaňok, director of the energy sector of the company Kalkulátor.cz, and adds: ” System services will become more expensive for all of us by CZK 120 per MWh. The tariffs we pay monthly, which are not affected by our electricity consumption, are actually almost unattractive for customers with higher consumption, because for each MWh they pay a total of around CZK 1,200 (CEZ distribution example). If someone consumes 5 MWh per year, they will pay an additional CZK 6,000. From this point of view the increase in the monthly fee of CZK 200 for the whole year is not really important. If someone owns an apartment with an annual consumption of only around 0.5 MWh, the MWh payment will increase by CZK 600. But its monthly rent will also increase by 200 crowns, so the total price will increase by a third.”

Last tip: be proactive and secure the lowest possible electricity price. Even if you don’t have the ability to influence the regulated part of the electricity price, you can influence the other part, the commercial part. The current time allows you to compare the current offers of energy suppliers on the market and save a lot of money thanks to the correctly selected supplier and its tariff for your family.

Lukáš Kaňok

Lukáš Kaňok is an experienced entrepreneur, whose professional career began in the TELCO sector, where he worked for 14 years, and has now continued for 8 years in the world of online comparison of energy, insurance and financial prices. His passion and expertise in the field of startups, especially in the energy and financial sectors, place him among the leading experts. His interest in new technologies has helped him develop innovative solutions and strategies for the energy and financial sectors. In the business world he stands out not only for his rich experience, but also for his enthusiasm and determination to bring about positive changes in the fields of energy and finance. At less than 50 years old, Lukáš is already a grandfather and above all a passionate motorcyclist.

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2024-01-12 14:54:25
#Electricity #prices #kind #price #increases #expect

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