According to the Bulgarian government, the Russian UES is negotiating the purchase of one power plant, Varna, out of the two it won earlier in a tender (Varna with a capacity of 1,260 MW and Russe with a capacity of 400MW). CEZ finished 2nd in the tender and therefore now has a chance to step back into the game with an offer of EUR 36.3m. However, Bulgaria has said that should Varna be sold, it is likely that Russe will remain state owned.
According to the Czech Ministry of the Environment, the EU may force the Czech Republic to reduce its CO2 emission credits of 97.6m tons through 2005-2007 due to drops in installations after the credits were assigned. Based on the current allowance, CEZ should make a profit by selling extra CO2 credits during the period with an impact of CZK 8/share on the fair price. We don’t expect the measure to limit CEZ as it concerns reduced capacities.