CEZ repeated that the three-year plan to integrate its five regional power distributors will save it as much as CZK 2bn (CZK 3.4 / share) a year, since functions like trading and customer support will be combined. The savings will mostly come through staff reductions. The integration costs should reach about CZK 1 to 2 billion, but should be covered within one year. The plan is expected to last until 2008 and was approved in 2004. The risks of the plan lie in the relatively low mobility of the Czech labour force and a decision by the Czech competition regulator to prevent CEZ keeping one of the distributors, Severoceska Energetika. Source Bloomberg
CEZ also said it might have to reduce its number of coal-burning plants after 2016 because of a shortage of coal if limits are not eased. This could mean that CEZ will face a power deficit and will have to import electricity. Plants burning coal now provide about 5,700 megawatts. That may drop as low as 1,000 megawatts after 2030, CEZ CEO Roman said. He added that if the current limits are broken, CEZ will install more than 4,000 megawatts in 2035. According to the law it is up to regional governments and municipalities to negotiate mining limits. Source Bloomberg