Residential electricity rates will rise by an average of 3%, although the price of the baseload electricity itself is expected to drop by 5% due to the increase in compensation benefit for renewable energy. Also, the cabinet agreed yesterday to lower the state’s subsidy for renewable energy next year by 2 bln. CZK
to 9.7 bln. CZK
. /NEUTRAL for CEZ shares as 75% of earnings of the company come from electricity generation linked with decreasing baseload electricity price. CEZ could not benefit from rising compensation benefit for renewable energy.
Separatelly, the company said on its webside within its comment to reaching 4th place in Platts TOP 250 energy companies that CEZ expects to face futher negative influences in 2013 as commodity markets fluctuation or regulations.