Chief of Czech Energy Regulatory Office A. Vitaskova said the watchdog wants to decrease electricity distribution tariffs of about 10% since next year.
According to CEZ’s segmantal contributions to EBITDA in 2012, the distribution and sale in CE accounted for 17.6 bln. CZK, i.e. 21% of total EBITDA (85.5 bln. CZK). Therefore, 10% decrease of distribution fees could lead to about 1.5 bln. lower EBITDA in 2014 (ceteris paribus). Slightly NEGATIVE in our view as such an intention has been mentioned earlier by the ERU but without any specific size of the decline. Please note that CEZ is to release its 2Q13 results tomorow, B/MKT.