Average gas prices rise in the Czech Republic from 1st April
Gas prices in the Czech Republic are due to rise by 0.43% on 1st April with the full liberalisation of the market, with a 1.17% average increase for households.
M. Kajtmann, head of RWE Transgas marketing division, said in a statement: “The drop in oil prices and the rising value of the Czech Koruna had an effect in the first quarter of this year on the payments of Czech end-users. At that time the regulatory authority reduced gas prices in all categories by CZK 63.56/MW as part of their gas price adjustments. By doing so, it made the adjustment from the previous period felt. Thus gas has been somewhat cheaper in the Czech Republic over the past few months than on international markets.”
The last price change was on 1st January this year, when the ERU reduced prices by an average of 8.6%, and 4.2% for households. According to a spokesman for RWE Transgas, the increase simply brings the gas price back into line with costs.
Households were liberalised at the start of the year, marking this the first unregulated price change, but according to a decision from the Czech Energy Regulatory Office (ERU) at the end of November, the price cap on gas storage and regional distribution companies’ selling price of gas from RWE Transgas would not be liberalised until 1st April. Transport and storage will remain regulated.
Kajtmann added: “Price differences between customer categories will continue to be defined above all by the supply and transport charges. These are dictated in each region above all by the varying structure of the supply grid and operating costs associated with it. Distributor prices will be regulated by the regulator ERU.”
The press release went on to say: “Despite all the changes RWE Transgas had previously discussed with the ERU, the method of price-setting will in practice remain unchanged. The commodity price will be calculated on the basis of the price formula and costs of a given customer sector. The price for households, small and commercial customers will be set quarterly and published as a price list 30 days before coming into force. The price for large customers (VO) with offtake between 4,200-52,000 MWh will be set monthly and also published 30 days before coming into force. The price for VO (over 52,500 MWh) will be on a price formula negotiated contract by contract.”
RWE Transgas concentrates on gas supply, and controls six of the eight gas distributing companies, while RWE Transgas Net is 100%-owned by RWE Transgas, and manages transmission and related services. ZD/ES
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