CEZ introduced its wholesale electricity price offer for 2005 yesterday. While the offer would represent up to a 14% increase in average wholesale electricity prices (with whole-year constant electricity supply contracts - so called yellow energy - being up 15.6% to CZK 940 per MWh), the final agreed average price may yet change subject to demand and its structure. Customers’ bids should be submitted by September 3 and the final prices are to be released by the end of September. Source: CTK.
Although the increase has been expected due to rising prices in the EU and especially Germany, and due to the prevailing gap between price levels in the CR and EU, the size of the increase is larger than expected and would be positive for CEZ, subject to final demand, distributors' margins and regulator ruling on retail prices, which is expected in November.
Jan Hájek, Patria Finance