Today, Ministry of the Environment should resealed national relocation of the CO2 credits. Note that Czech Republic received for the second period (2008 - 2012) 86.8m tons of CO2 allowances, 14.8% less than requested. However CR also sues the European Commission for lower CO2, Ministry of Environment will relocate CO2 from lower quota. Companies has one month to comment the relocation. Our view: CEZ initially requested for the NAP II 40m tons of CO2 credits and although it is still unclear how the national quota will be allocated to each sector, we assume that CEZ’s request will be cut substantially. Should CEZ receive in absolute terms less than what it received in NAP I., i.e. 35.4m what was then 36.5% and currently represents 40.8%, CEZ could be short of CO2 credits for 2008-2012 period according to our assumptions. Note that CEZ wisely started to buy CO2 credits for the NAP II. over past couple months in anticipation of price increase. Price of CO2 credits increased by 62.9% to EUR 23.93/ton since February.