Keep calm and shine on: What Bohemia Energy's bankruptcy means for its customers

Yesterday it was announced that the largest supplier of alternative energy sources in the Czech Republic had filed for bankruptcy.

Bohemia Energy declared bankruptcy after sharply rising prices led to an exodus of customers. The company is the latest victim of a Europe-wide energy crisis leading to sharp spikes in prices in countries across the continent.

The move will necessitate the transfer of customers to other energy suppliers. Around 900,000 customers in the Czech Republic will gradually be switched to other providers.

So what exactly does this mean for Bohemia Energy's current clients?

In a press release yesterday, the city of Prague announced that the provision of energy by companies in which it has a direct stake will allow for a stable supply of gas and electricity to Prague residents. Customers have six months to find a new long-term supplier of energy.

"Due to the fact that the first bankruptcies of suppliers have begun in recent days, Pražská plynárenská wants to reassure the public that it is fully prepared as a supplier to ensure immediate delivery to the customers affected by the above situation," said the Chairman of the Board of Directors of Pražská plynárenská Martin Pacovský.

For electricity, replacement companies are E.ON, Pražská energetika and ČEZ; for gas, they are E.ON, Pražská plynárenská, and Innogy. All these companies immediately declared that they were ready to take over customers and secure deliveries to them.

Because the transfer will take place automatically as given by law, Bohemia Energy customers needn't worry about contacting the companies. On the contrary, companies will gradually contact them all themselves.

Normally such notifications would take place within five days. However, due to the size of Bohemia Energy and the number of customers affected, minor delays are likely to occur.

"Clients do not have to do anything at all, we will contact them ourselves and give them all necessary information such as the price for delivery, the amount of deposits, the due date, and where to send the money. We would like to ask customers to be patient," adds Jan Zápotočný from the management of E.ON.

Consumers are advised to check the websites of their replacement suppliers for further details. Bohemia Energy customers have six months to switch to another supplier, if they find a better plan elsewhere.

Customers don't have to do anything at this time. "They don't have to call or go to branches. Their replacement supplier will contact them himself within a few days. They will receive basic information from them, and an announcement about the price at which they will supply energy," said the head of the Energy Regulatory Office Stanislav Trávníček.

But it is warned that an influx of customers to "suppliers of last resort" is likely to lead to higher prices from those replacement companies, especially as prices on the energy market are now extremely high across Europe.

What should you now if you are a Bohemia Energy customer?