Consumers in Czechia Can Terminate Contracts if Energy Suppliers Lack Secured Supply

Households and small businesses in Czechia can now withdraw from fixed-price electricity or gas contracts if their supplier has not secured at least 70 percent of expected consumption. The new rule comes into effect with an amendment to the Energy Act and is designed to increase consumer protection following past supplier failures.

Under the amendment, energy traders are required to publish a so-called “security index” twice a year. The index shows what proportion of their customers’ consumption they have purchased in advance, giving consumers greater transparency when choosing a supplier. If a supplier does not publish the index on time or fails to meet the 70 percent coverage requirement, customers are entitled to terminate their contracts.

“The security index is a simple figure with two benefits. Consumers can use it as an additional factor when deciding whether to change suppliers, and they also gain protection if their supplier does not have sufficient energy secured,” said Markéta Zemanová, a member of the Energy Regulatory Office (ERÚ) board.

The index must be published by the end of March and September each year, both on the supplier’s website and with the ERÚ. The measure was introduced partly in response to the collapse of Bohemia Energy in 2021, when the company exited the market amid soaring energy prices after failing to secure adequate supply.

According to ERÚ, the new system is intended to strengthen trust in the retail energy market and reduce risks for households and small businesses relying on fixed-price contracts.

Source: CTK