Change in electricity prices from 1. 1. 2010 for households and businesses connected to low-voltage networks

1. How will electricity prices change from 1. 1. 2010 for households and businesses which off-take electricity from low-voltage networks?

For households and businesses which off-take electricity from low-voltage networks, there will be a decrease in the price from 1. 1. 2010. Electricity payments will be decreased by an average of 14.1 % for households and an average of 13.9 % for businesses.

However, the whole payment from the client consists of both the payment for delivery of electricity, and also payments for regulated components - these are payments for the distribution of electricity and the related service. On the basis of the decision of the Energy Regulation Office, there was an increase in these regulated components by an average of 10.86 % for households and businesses.

The decrease in the payment for the delivery of electricity and the increase in the payment for regulated components are both reflected in the total electricity payment. In the price from 1. 1. 2010, there is a decrease in the overall electricity payment by clients by an average of 3.95 % for households and a decrease in the overall electricity payment by an average of 3.42 % for businesses taking electricity from low-voltage networks.

(The overall electricity payment for each individual client differs according to the agreed product, delivery, rate of distribution, method of the use of the electricity and, of course, according to the volume of electricity consumed; for this reason, the change in the price of electricity from 1. 1. 2010 will be reflected in a different manner for each client.)

2. Why is there a decrease in electricity prices from 1. 1. 2010?

The price for the delivery of electricity for clients is completely influenced by the price of electricity on the wholesale market. Due to the fact that particularly in the second half of 2008 and in the first half of 2009, the price of electricity on the wholesale market decreased, we can now ensure that our clients profit from this development. Therefore, from 1. 1. 2010, our company decided to decrease the overall price of electricity for our clients.

3. In relation to the change in prices from 1. 1. 2010, will your company carry out additional electricity meter readings for the allocation of the settlement for the period before and after the change in prices? In what way will the allocation of the settlement of electricity consumption be invoiced to clients in the period before and after the change in prices will be implemented?

Our company will not carry out any additional electricity meter readings in relation to the change in electricity prices from 1. 1. 2010. For settlement, the electricity consumption will be divided proportionally for the period from the last settlement up to 31. 12. 2009 and the period from 1. 1. 2010 to the nearest settlement, according to the number of days in the individual periods. Consumption up to 31. 12. 2009 will be invoiced at the price valid for 2009; consumption after 1. 1. 2010 at the price valid for 2010. If you would like to have your consumption divided into two periods, please advise us of the reading on your electrometer by 31. 12. 2009 through the online self-reading of electrometer on our website or send a request to the e-mail address info@eon.cz or contact the E.ON Client line on 840 111 333. The electrometer reading must be given no later than by 15. 1. 2010, ideally in the form of online self-reading of the electrometer.

4. Will the advance for electricity be changed for clients in relation to the change of electricity from 1. 1. 2010?

Our company will automatically change the level of the advance for electricity from 1. 1. 2010. If you require to individually change the amount of the advance, please use the online form on this website or send us your request to the e-mail address info@eon.cz or contact E.ON Client line 840 111 333.

Additional questions and answers

5. In autumn this year, you offered products from the Trend series which I agreed to use. You offered a delivery discount that was 12% lower when compared with this year’s discount. From 1. 1. 2010 the delivery discount is higher. Does this mean that those clients that concluded contracts for Trend products will be worse off than the other clients for whom the price will be decreased from 1. 1. 2010?

In 2009, those clients who had started using the new series of Trend products could take advantage of the lower price for the delivery of electricity from the date when they agreed to use the series of Trend products. For example, the first clients who agreed to use the new series of Trend products in September 2009 will profit from a 12 % decrease in the price from 1 September 2009 for 12 months, not from 1 January 2010. The final comparison will be made at the time of specifying the price of the Trend series for the period from 1 September 2010 which is currently unknown. However, we assume that clients using the new series of Trend products will benefit more than those clients using Klasik products.

6. How can clients learn of the new electricity prices from 1. 1.2010? 

Our company published the intention to change the electricity prices from 1. 1. 2010 in the media in late October 2009. Prices valid from 1. 1. 2010 will be available from the beginning of December 2009 on this website. We will be pleased to advise you of these if you contact us at the e-mail address info@eon.cz or call E.ON Client line 840 111 333.

7. New VAT rate will be valid from 1 January 2010. How will this be reflected on my statement of accounts?

Due to the change of the VAT rates, from 1.1.2010 the power and gas supplies will be charged as follows: 19% VAT will apply to consumption before 31 December 2009, which falls within 2009, and 20% VAT will apply to consumption after 1 January 2010, which falls within 2010.