CEZ said that the company is registering demand for wholesale electricity prices for 2006 at 10% or more above 2005 prices. Note that CEZ sets its wholesale price for the following year based on electricity demand/supply in August/September. The price setting is done in two rounds, while the price in the second round is lower; e.g. in 2004 the first proposal for the 2005 price was an increase by 16% y/y, which was then lowered to 11% y/y. In our model we expect the 2006 average wholesale electricity price to increase by 5-6%.