Prague will buy electricity in the first half of 2023 from Pražská energetika
Update: 12/30/2022 12:06 p.m
Issued by: 12/30/2022, 12:06 p.m
Prague – The capital will purchase electricity from Pražská energetika (PRE) in the first half of 2023 at so-called spot prices, which are based on the prices currently traded on the stock exchange. From January 1, 2023, however, supplies to the capital and its subsidized organizations will be billed according to the current government ceiling on the price of power electricity, i.e. for 5,000 crowns without VAT per MWh. The city will purchase the electricity through its organization Prague Community of Renewable Energy (PSOE). At the beginning of 2023, it will start preparing a new procurement procedure for electricity supplies for the second half of next year. Municipality spokesman Vít Hofman told ČTK.
“Spot prices will apply if the government regulation expires by June 30, 2023, or if spot prices fall below the ceiling price during that period,” Hofman added.
The reason for this procedure is that the city councilors in December refused to approve the result of the classic selection process. In the canceled tender, PRE won at the time with a price of 510 million crowns. However, the capital city’s current contract with PRE is only valid until the end of this year. Therefore, on December 21, PSOE approached three suppliers to submit bids, and on December 27, the evaluation committee selected the winning bidder, which is again PRE. The latter offered deliveries at spot prices, including sufficient quantities. From January 1, 2023, supplies to the capital and its subsidized organizations will be billed according to the current government ceiling on the price of power electricity, i.e. for 5,000 crowns without VAT per MWh.
“We are in an unprecedented and complex situation with turbulent developments in the energy market. By concluding the contracts, we resolved the purchase of electricity for the next period under favorable conditions. I believe that in the new year the city will work as soon as possible in the standard mode with the new city management so that similar situations did not occur during council meetings,” said acting deputy mayor Jana Plamínková (STAN).
The city concluded a contract for the purchase of electricity for itself and 198 of its organizations for the first half of 2023. The contract turned out to be open in the negotiation process through the PSOE, due to the rejection of the result of the representative’s tender, there was a threat that the metropolis would not have a supplier from January. For example, some representatives were bothered by the amount of the margin for the winner, and they also criticized the supplier selection process.
The intention to tender for an electricity supplier was approved by city councilors this September. At that time, due to high energy prices, the estimated price of the tender was set at approximately 1.32 billion crowns. In October, the government decided on the maximum consumption of electricity, which is why it is a multiple. The representatives subsequently refused to approve the result of this tender.
In connection with the energy crisis, the municipality has prepared cost-saving measures, whereby the heating is set to fewer degrees. Councilors have already approved a tender for the construction of a water feeder from the Vltava, which should be heated directly in the New Town Hall building with the help of heat pumps. The city has also instructed its organizations to try to make quick savings, for example by reducing or replacing older appliances. In the case of public lighting, the municipality is gradually investing in the replacement of sodium discharge lamps with significantly more economical LED variants. Night lighting was also limited this year.