Electricity prices - Czech Republic

Czech Electricity Market

Electricity Generation Mix

The Czech power sector remains dominated by nuclear and coal. In 2024 Czech generators produced about 68.7 TWh. Nuclear power supplied roughly 40–41% of that (≈28 TWh) – the single largest source. Coal-fired plants (mainly lignite) supplied about 33–34% (≈23.7 TWh). Renewables are a smaller but growing share. Photovoltaics alone reached record output (~3.9 TWh, about 5.7% of generation in 2024). Hydropower and other renewables (wind, biomass) each contribute on the order of a few percent (roughly 3–4% each). Gas-fired generation is minor (around 5% of total), and other sources (import balancing, etc.) fill the remainder. In summary, roughly 40–42% nuclear, ~33–34% coal, ~15–18% renewables (solar≈6%, hydro≈3–4%, biomass/wind low-single-digits), and ~5% gas (other sources negligible).

Primary sources (2024): Nuclear ~41%; Brown-coal-fired ~33.4%; Renewables (solar, hydro, biomass, wind) combined ~16%; Gas ~5%. (This mix is changing as coal output falls and solar grows.)

Electricity Price Components for End Customers

End-customer electricity bills in the Czech Republic include a non-regulated “energy” price plus several regulated fees and taxes. In practice the bill breaks down into:

• Commodity price (silová elektřina): The base price of electricity per kWh (non-regulated). Retail suppliers set this according to wholesale market prices (e.g. day-ahead PXE rates plus their margin) and their commercial strategy. It is typically the largest single component of the bill.

• Network (Distribution/Transmission) fees: Regulated charges for delivery through the transmission and distribution grids. These are set by the Energy Regulator (ERÚ) and depend on region and customer tariff class. They include a variable per-kWh distribution charge plus a fixed capacity (“reserved power”) fee based on the customer’s fuse size. Distribution fees are by far the largest part of the regulated charges. (Czech law also requires any energy producer feeding in to cover its “imbalance” costs if not procuring exactly its generation via OTE markets.)

• System services (ČEPS fees): A charge collected on the bill to pay the grid operator (ČEPS) for balancing services that maintain supply/demand equilibrium. This “poplatek za systémové služby” is a small regulated per-kWh fee.

• Operator fee (OTE): A tiny fee for the market operator (OTE) covering settlement of imbalances. This is typically only a few haléřů/kWh.

• Renewables support (POZE): A surcharge to cover subsidies for “supported” renewable and cogeneration plants (příspěvek na podporované zdroje, POZE). This is part of the regulated component. (Notably, this fee was waived in 2023 but generally applies).

• Electricity tax (eco-tax): An excise duty on electricity (“daň z elektřiny”), currently about 28.30 CZK/MWh (≈0.0283 CZK/kWh).

• Value Added Tax: 21% VAT is added on the sum of all the above.

In formulaic terms: Final price (incl. VAT) = Commodity price + Distribution/Transmission fees + System services + Market operator + Renewables surcharge + Electricity tax + 21% VAT.

Distribution charges (set by ERÚ) constitute the bulk of the regulated component, with system/OTE/renewables fees making up the rest. Suppliers typically quote a fixed “kč/kWh” for energy plus a fixed monthly fee; the regulated grid and tax components are added separately on invoices.

Dynamic Electricity Tariffs

Dynamic tariffs (spot-indexed pricing) are contracts where the consumer’s energy price varies in (near) real-time with wholesale market prices. In the Czech context, a “smlouva s dynamickým určením ceny” means the supplier sets the customer’s electricity price according to a predefined formula tied to short-term (spot) market rates. In practice this usually means using the hourly day-ahead price on the OTE power exchange (PXE day-ahead market) as the energy component of the bill. The customer therefore pays the actual spot price in each hour, possibly with a small markup or fee. For example, CEZ’s commercial “Elektřina SPOT” product passes through the OTE day-ahead price for each hour.

To participate in dynamic pricing, the consumer’s meter must record interval (e.g. 15-minute or hourly) consumption. Czech law requires a “průběhový měřič” for such contracts. Only customers with a smart/interval meter (and typically significant load) are eligible. Consumers on these tariffs can shift load to cheaper hours (for instance running appliances at night or midday when prices fall), potentially saving money. However, since prices can spike (e.g. during high-demand or fuel-price events), there is risk: bills may be higher if consumption occurs during expensive hours.

EU/CZ regulations: Dynamic pricing is explicitly foreseen in the Electricity Market Directive. The EU’s recent market design reforms (Directive 2024/1711) even require Member States to offer dynamic pricing options so consumers can exploit renewables’ variability. In Czech law, an amendment effective 2024 to the Energy Act (“Lex OZE 3”) formally defined the “dynamické určení ceny” concept. The law stipulates that such contracts can only be entered if the site has interval metering, and it grants consumers special protections (e.g. one-month cancellation right and detailed upfront information on risks). In fact, earlier in 2023 the government temporarily suspended spot contracts for households under a price-cap policy. As of 2024-25, dynamic tariffs are legally allowed but effectively only for customers with smart meters (initially large consumers, with smart meter rollout extending to >6 MWh/year users from 2025).

Dynamic-Tariff Offerings by Providers

Several Czech electricity suppliers now offer dynamic or time-variable tariffs. Key examples include:

Key comparisons: All dynamic tariffs require a smart (interval) meter. ČEZ’s “Dynamic” for households uses fixed discount bands (so hourly relative prices), whereas ČEZ’s and Tedom’s “Spot” products feed through the actual wholesale (day-ahead) price. The spot-based products typically include a small markup and/or risk-management cap, and allow saving (or losing) depending on hourly price swings. Standard industry practice is 1-month termination notice for these plans.

Peak and Off-Peak Hours

Czech Republic 2024 – Average Hourly Wholesale Electricity Price (OTE)

The two peaks and why they appear

1. Morning ramp‑up (07‑10 h)
   Demand driver: households wake up (cooking, electric showers, heating), public transport and offices start, and many industrial processes pick up right after shift change.
   Supply side: solar is only beginning to ramp, winds can be variable, so marginal generation often comes from gas or coal plants with higher operating costs → prices tick up.

2. Evening high (18‑21 h)
   Demand driver: almost purely residential—people return home, cook dinner, turn on lights/heating/TV, and more EVs start charging.
   Supply side: solar output has collapsed to zero while demand is still high, so the system again leans on dispatchable (usually fossil) plants. That absence of cheap solar makes this peak about 17 % pricier than the morning one.

Mid‑day dip

Between roughly 12 h and 15 h the wholesale price bottoms out (~ 0.08 €/kWh). Central‑European noon now coincides with:

• Maximum PV generation feeding the grid, suppressing the clearing price.
• Many factories and offices already running steadily, so incremental demand isn’t spiking.

Average prices in this slot are 35‑55 % lower than during the two peaks, which is why dynamic‑tariff households (or anyone with flexible loads/batteries) try to shift dish‑washers, heat‑pumps or EV charging here.

Take‑aways for consumers and system operators

• Load‑shifting pays: Moving 10 kWh from the 20:00 peak to the 14:00 valley would have saved ~ 0.50 € on the 2024 average.
• Storage value: The spread between the trough (0.078 €) and the evening max (0.140 €) is ~ 0.06 €/kWh—roughly the arbitrage margin batteries can monetise.
• Policy insight: The pronounced evening peak underlines the importance of non‑solar renewables (wind, hydro, biomass) and storage in Czechia’s future mix; solar alone flattens the mid‑day but worsens the sunset ramp unless paired with flexibility.

In short, the chart reflects a classic “duck curve”: cheap solar‑soaked middays flanked by demand‑driven peaks—especially the higher, solar‑starved one after sunset.