The choice of electricity supplier in the czech republic in 2020 in terms of the cost of electricity consumption for households and for small businesses - a simulation model

The situation on the Czech electricity market from the point of view of small customers or households is confusing every year. Although information on electricity consumption prices for households and small businesses is already freely available on the Internet (web pages of the Electricity Regulation Office), understanding the rules for calculating electricity consumption costs is still not easy for ordinary small consumers. For small entrepreneurs, the question often arises as to whether tariffs intended for households can be used for the electricity consumption, or whether it is necessary or appropriate to switch to tariffs for small business consumption. This article is focused on the analysis of the offer of electricity suppliers for the year 2020 in the Czech Republic from the point of view of the distribution rate D25d for households, resp. C25d for entrepreneurs in order to assess differences in the cost of electricity consumption and to select those products and suppliers for which the annual cost of electricity consumption is minimal. Monte Carlo simulation, where the monthly electricity consumption is generated (normal probability distribution), is used for the analysis together with the basics of multicriteria decision making, especially the non-dominance testing principle. The results show that the differences in the annual electricity consumption costs can be around 15% and the tariff rates for households are cheaper than the tariff rates for the entrepreneurs (also here the difference in annual costs can be around 15-20%)