CEZ opened electricity auction for 2006 last Friday with opening price 15% yoy higher. There are indications that the final price may not differ substantially from the opening price as in the past due to strong demand for electricity and increasing price abroad. Note that CEZ’s price forms only c33% of household price. Other items include VAT, distribution fees, ancillary services and transmission, etc. Assuming 15% increase in CEZ’s price, household prices would rise by 5%. Nevertheless, it is expected that the other costs would increase in 2006 due to inclusion of unbundling costs (separation of electricity distribution and sales as required by the EU) adding further c3-4 pps to the price growth.