Supplier of last resort

Article

October 25, 2021

A supplier of last resort (DPI) is a supplier of electricity or gas that will take over the supply of energy in the event of the bankruptcy of the existing supplier. It starts delivery immediately, so there is no risk of interruption of electricity or gas supply to households, companies or municipalities. People can take energy from the supplier of last resort for a maximum of half a year. During this time, they can choose a new proper supplier. The supplier of last resort will contact the clients himself, they do not have to call anywhere or go to branches. Which of the suppliers it will be depends on the distribution area where the collection point is located. By switching to DPI, the contract with the original supplier ceases to apply, even if it was concluded for a definite period of time. The supplier of last resort notifies clients of the prices for delivery, the amount of advance payments, etc. The price at which DPI will supply energy is not regulated, but it is governed by fixed rules. According to the Energy Regulatory Office, DPI can reflect higher costs associated with taking over customers for a short period of time as well as rising electricity and gas prices. Customers who had older contracts with a favorable price at the original supplier can thus feel a greater increase in price.

Suppliers of last resort in the Czech Republic

There are three suppliers of last resort for electricity and three suppliers for gas on the Czech market. Each of them fulfills this obligation in the designated distribution area.

Electricity

ČEZ Prodej, a.s. E.ON Energie, a.s. Pražská energetika, a.s.

Gas

E.ON Energie, a.s. Innogy Pražská plynárenská, a. S.

Legislation

The institute of the supplier of last resort is regulated by Act No. 458/2000 Coll., The Energy Act, and decrees for the electricity and gas market.

Reference

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