According to CTK, the gross generation of electricity in Czech Republic increased by 1.6%y/y to 23.55TWh in 1Q2007 due to demand in foreign countries. On other hand, the net domestic consumption decreased by 6.1% y/y to 16.1TWh in 1Q2007 that was caused by mild weather. CEZ exported more electricity to Slovakia (+114% y/y) and Austria (+47% y/y) than to Germany where export decrease by 20% y/y in 1Q2007. Our view: We see the decrease in domestic electricity consumption as negative for CEZ business, however the increasing demand in foreign countries off-set the lower consumption in Czech Republic therefore we see the news as neutral.