Drama on the energy market: suppliers are becoming even more expensive, they have no choice

Households and businesses have long struggled with often unmanageable energy bills. At the end of last year, the market was supposed to improve, but the war in Ukraine shook the whole situation and no one dares to estimate where prices could rise. It can be a huge problem for people to find energy suppliers, often even the biggest ones don’t want to acquire new customers. If so, they must accept very unfavorable offers.

“In the fall, we expected an improvement in the situation with energy prices around this period, i.e. at the end of the heating season. gas storage tanks survive the winter, the Nord Stream 2 gas pipeline becomes operational and gas prices drop. On the contrary, the war and the possibility of stopping the flow of Russian gas to Europe have made drive up prices,” energy analyst Jiří Gavor told Echo24, adding that Russia’s gas supplies won’t be cut off at the end.

But it’s still true that gasoline prices should go down. “However, they will not fall in the values ​​we were talking about six months ago. It will now be a success when it goes from around 90 euros per megawatt hour currently to 50 euros for example. But only in a situation where it does not “There will be no disconnection of Russian gas. In any case, I think that this decision can be expected from the European Union, not that Russia will approach it,” Gavor said.

If, after all, there was an interruption, gas prices would cease to be quoted, so exchange trading prices would not be created at all. Physical deliveries would therefore be de facto disrupted. “It remains to be seen to what extent a certain controlled disconnection of customers from the largest to the smallest, that is to say households, would succeed”, fears the analyst.

It was too late to fix the prices before Christmas

As for setting gas prices, experts recommended waiting until the end of last year and concluding contracts with suppliers for an indefinite period. It was expected that the price would drop, so the fixing wouldn’t have to pay. Now the situation is different and it is true that the one who fixed the energy a year ago, for example, is now the most advantageous. However, if someone set the prices by the end of the year, it was too late. The crash of small energy providers, which triggered the fall of Bohemia Energy, shook the market strongly.

“These people were already receiving such high prices that it was no longer too different from the current level. However, I am really convinced that gas prices, and therefore also electricity prices, will come down very slowly,” says Feed.

Most suppliers have already raised their prices. More recently, the PRE has increased electricity prices by 30% since April, and the price of gas has increased by 25% since May. The big problem now, however, is that a large number of suppliers are no longer acquiring new customers at all. “Now people can no longer be advised to look around the market and find the cheapest supplier. Now is not the right time for someone to terminate a contract with their supplier and look for another Even Pražská plynárenská refuses to offer new products to large customers,” Gavor said.

If people turn to a new supplier, they should expect not to be able to offer them good terms. “After all, ČEZ is in a better position, as a strong group, it does not have such a problem with bank guarantees. So far, it offers new customers both open-ended and fixed-term contracts. fixed term from one to three years. However, the prices offered are really high, even up to one thousand crowns per megawatt hour, compared to what existing customers pay,” the analyst points out.

So now that war and uncertainty have affected the whole energy market even more, people shouldn’t wait for prices to drop. Rather, it can be assumed that most suppliers will announce another price list change. “Large and small suppliers have been buying energy in advance since October at very high wholesale prices. At the same time, products have become more expensive for “only” customers by up to 50% Unfortunately, you have to realize that it’s actually really little,” Gavor said.

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