CEZ offers most customers cheaper electricity than its main rivals

Customers can save several hundred crowns per year. A promotional campaign aimed at challenging customers to compare competitive offers and to chose their supplier freely.

 „Competitors fight after the liberalization of sales to large and middle-sized customers is starting in electricity supplies to end customers as well. Using your own electricity consumption, calculate how much you can save if you switchto CEZ“ – this is a message from CEZ to all consumers in the CzechRepublic. CEZ´s tariffs, if compared with the offers of itsmain competitors PRE and E.ON., are favourable for an absolute majority of roughly 2 million customers.  If compared to PRE, CEZ is cheaperfor86 percent of supplies. Compared to E.ON, consumers who decide to change to CEZ will save upeven in 100 percent of cases. Thisis the situation on a fully operating energy market two years after its full liberalization.

CEZ expects a number of customers to really use its offer of cheaper electricity supplies. At present the company accounts for 45 % of supplies to end customers. Just now initiated campaign aims to acquire new so called tariff customers, i. e. households and small entrepreneurs.

„If electricity consumers compare our offer with our competitors´, they will simply find out that CEZ´s tariffs are in absolute majority of cases really cheaper. Why should they not save a few hundred crowns a year. No customer can now be prevented from choosing a supplier they prefer. All interested people can find a price calculator on our websites, where they can calculate exactly how much they can save by switching to CEZ,“  said Alan Svoboda, Chief Sales Officer CEZ.

Switching from another supplier to CEZ will be best for those who use electricity for lighting, cooking and running common domestic appliances, so called one-tariff rate customers. They constitute the largest group of all household consumers in the Czech Republic – a total of two thirds of all households use one tariff rate. CEZ is the cheapest supplier for 100 % of such customers of E.ON´s and 86 % of PRE´s.  In respect to electricity consumption, PRE´s terms are more favourable for garages or garden houses with very low consumption up to 150 KWh per year rather than flats and houses.

Customers using electric storage heaters to heat their houses and boilers to heat water are in a similar situation. These so called “Accu double tariff rates” with a possibility to draw electricity during eight-hour night low tariff rate are used by ¼ of all households. Switching from another supplier to CEZ will also be beneficial for all E.ON.´s customers and for roughly a half of the customers of PRE (the proportion of high to low tariff rates is 2:3 and higher).

Last group is comprised of consumers using electric heaters and household heat pumps. They have traditionally highest and most costly consumption. They constitute nearly one tenth of all customers on the market. In this group, CEZ is again cheapest for 100 % of E.ON´s customers and for 46 % of customers of PRE. That primarily includes customers consuming more electricity in the period of low tariff rate. They are mainly owners of electric heaters or electro-boilers.

„Our goal is to show our customers that we are offering the most favourable price while we are still improving our services and products. We are the only supplier in the Czech Republic that provides call centre services 24 hours a day, 7 days a week, payments accepted by all Sazka terminals or electronic payment system,“ said Bohumil Mazac, director of CEZ Prodej.

The promotional campaign of CEZ was initiated on January 14, 2007 by press advertisements. CEZ further plans to place outdoor advertising. Advertisements will appear throughout the Czech Republic, but especially in Prague, Southern Bohemia and Southern Moravia, in the areas of operation of CEZ´s largest rivals PRE and E.ON.

Ladislav Kriz, Press Officer, CEZ Group

January 2008