Yesterday the auction of 400MW of CEZ’s capacity for 2006 based on an anti-monopoly decision (relating to the acquisition of Severoceska energetika) started. Demand was 5.5x higher that the capacity offered. There were 17 parties interested, both domestic and foreign, while 16 submitted bids. CEZ set a price covering its costs at CZK 4.5m per MWh. The resulting price will be announced on August 8. The auction should serve as an important signal for electricity prices going forward while the oversubscription should support electricity price growth.