In 2012, households will pay less for electricity with E.ON

In 2012, in terms of total amount, customers of E.ON will save on costs for electricity and gas. There is a decrease in price regarding the most common tariff for households; in summary average, the price for electricity remains stable (average increase by 0.1% compared to 2011). On 1.1.2012, E.ON will also slightly decrease gas prices for its customers.

Only a few days after Christmas Eve, the households of E.ON customers will receive an unexpected, but welcomed present under the Christmas tree. Even though there are expected increases in energy prices, in terms of total amount, households might end up saving money on the delivery of their electricity and gas. More than one million customers in Southern Bohemia and Southern Moravia will benefit from the provident business policy of the company. “This has been made possible by E.ON’s success in the advantageous purchase of a supply of electricity before it became more expensive as a result of the accident in Japan’s Fukushima in March,” explained Michal Šafář, the Chairman of the Board of Directors of E.ON Energie.

Another piece of good news is that E.ON’s distribution costs for electricity will decrease in 2012, which will be reflected in many ways, including a decrease in the distribution price for both the high tariff and the permanent monthly rate. “It is obvious that the distribution prices of electricity in our company are below average throughout the whole Czech Republic and we are in fact the only distribution company whose total average price for distribution in voltage levels of high and low voltage has decreased year after year (by either 5 % or 6 %). This is a result of the effective cost policy of our company. The methodology of regulation is set up in such a way, that a lower cost base established for any subject who saved costs in one regulation period will maintain the same cost base in the next period, as well. Now it applies, that in case of low inflation, no dramatic increases of the cost base can be expected in following years of the current regulation period. On the other hand, our company has been obliged to pay substantial costs for the connections of photovoltaic plants over the last 2 years. The regulated costs of our company for the 2012 were, according to valid rules, indexed with the same rate as for companies who did not realize connections to a similar extent. We would consider it discriminatory if such costs for connection are not regarded in the following regulation period,” said Josef Havel, the Chairman of the Board of Directors of E.ON Distribuce.

The amount of contribution to support electricity production from renewable resources was also a subject of great discussion. 2012 should be critical in this respect, due to previous rapid development, particularly in regards to photovoltaic power plants. Due to gradual restriction of these resources and contributions from the state budget, the increase in financial support of electricity production from renewable resources will not be so high, either. Prices of other services also have a positive influence on the total price for electricity. Considering the fact that the amount of taxes related to delivery of electricity shall not be changed in the next year, most of E.ON’s household customers will pay less for the electricity. “An ordinary household, who uses electricity for operation of household appliances and lighting can therefore save as much as a few hundred crowns per year”, adds Vladimír Vácha, E.ON spokesman.

E.ON’s gas customers will also be pleasantly surprised by a price decrease in 2012. They will also get this commodity at a cheaper rate (a few percent), than they can from the biggest domestic supplier, RWE. “Our company decided to keep the prices for the commodity at their current level. After including the decreased prices for gas distribution, in the end, customers might even save on the delivery of their gas,” added Vladimír Vácha.

E.ON is one of the biggest global energy companies owned by shareholders, and provides consumers with electricity and gas. At workplaces throughout the whole of Europe, in Russia and in North America, in 2010 more than 85,000 of our employees accomplished sales in the amount of almost 93 billion EUR. We have a demanding target – to produce cleaner and better energy anywhere where we do business. And we are going further – we intend to extend our business beyond the borders of Europe. Our new strategy, whose motto is “Cleaner and better energy,” will lead to transformation of E.ON into a global provider of specialized energy solutions.

Under management of the group, which is seated in Düsseldorf, the E.ON group is divided into segments – global units (according to functions) and regional units (according to country). Five global units manage our production portfolio, trading energies, projects of investment construction and innovative technologies and business in the area of natural gas in a global extent. Twelve regional units manage our retail transactions, regional energy networks and production-distribution activities in Europe.

The E.ON energy group in the Czech Republic is a member of the E.ON AG group. E.ON AG is the world’s biggest private provider of energy services and provides electricity and gas to approx. 30 million customers. The Czech E.ON group provides electricity to 1.2 million of clients in Southern Bohemia and Southern Moravia, and its market share is approx. 20%. In the area of gas it has a network spanning over 4,000 km. It provides gas to more than 120,000 clients in Southern Bohemia and in Southern Moravia.

Vladimír Vácha
Concern Communication