According to Karel Hanzelka, a spokesperson for Pražská energetika, customers with fixed energy prices below the ceiling set by the government will continue to pay the same amount. On the contrary, for customers whose fixed price is above the price ceiling, this price will be reduced. CEZ and Innogy will proceed similarly.
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Michel McKinner of independent consulting firm EGÚ Brno answered questions about setting energy prices.
So when the government announced a price cap, is it now appropriate for customers to negotiate new tariffs and new fixes with the supplier?
There is no need to do anything at this point. If someone is currently out of contract and needs to make a new one, the only thing I can recommend is to focus on the price you’ll pay for the years that the subsidy system probably won’t cover, so 2024 and beyond. Which if possible Not committing to any high prices in the long term.
For those of us who have a fixed rate above the government’s stated cap, how will we find out how much the supplier will actually charge us and whether the deposits will change?
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So at the moment it is done in such a way that the House of Representatives has adopted a framework law. In my opinion, the government has done it very cleverly, because the law is difficult to change and the situation can develop Very fast, So the law is not flexible enough. However, the new framework law gives the government powers that allow it to be flexible and respond to the evolving situation.
It is now announced that the price of electricity will be the highest for small consumption at six kroner and the price of gas at three kroner. yIts really possible that in half a year It will be another amount as it turns out that it is needed simply due to market developments etc.
I would rather ask, where can we find it? We’ll find it, I think, in a timeline of what’s coming from the suppliers.
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Of course, it will likely be on the bill. I don’t know for sure. Mr.’s intentionlikely So that should be reflected in the amount of advances. This is really an issue that is not being determined at this time.
If someone decides to change suppliers, what should they look for and how can they identify a disadvantage in this situation?
As I said before, now it is better to focus on 2024 and 2025. They will not be covered by the support system. Otherwise, it is recommended to proceed as usual. You can use different calculators for comparison gates, which usually work very well. Then the only thing I can also recommend is to focus on the notice period so that it is not too long.
Isn’t there a danger that suppliers will make something like cartel agreements with each other, and that they will coordinate prices with each other in order to mitigate the effects of the cap?
Traders will not feel the effects. In other words, the state will pay the difference between the ceiling price and the merchant’s purchase price for electricity. Roughly speaking, the state will have to cover them from some fund, for which they have not yet received money. There is a risk, and I don’t know how the government thinks of it, that merchants are now tempted to increase prices, because they will know it doesn’t hurt customers. The only person who will be affected is the state budget of the Czech Republic. I think there will be some techniques that hopefully will address this possibility.
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In your view, does the announced price cap fundamentally change market conditions?
This is very large. It’s something completely non-market. The market should really respond to the price when there is a shortage. The market has practically collapsed here, but it’s actually working as expected. There is simply a big risk that if there is a greater shortage, the price will go up. Thus, consumption must be adjusted. So the cap changes this market principle.
It basically cancels it out temporarily. To what extent is it necessary? So I think it was really necessary, and it’s acceptable, and in essence, I’d say excusable. The question is how people will react and, above all, what this means to save gas. If I have a price cap, it makes me less inclined to save. I would like to appeal to everyone to save especially on gas, because from a purely technical point of view, there may not be such gas in the Czech gas system For the season 2022-2023 Enough.
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