The European Commission (EC) should present a new energy plan for the EU following its increasing dependence on foreign countries in terms of oil&gas imports. The plan assumes increased liberalization of the market allowing for a free energy trading across the EU. This should eventually lead to a built up of new cross border capacities and a pressure on lower current cross-border capacities prices. EU market liberalization should have a positive impact on CEZ given the increasing electricity demand in the region. In addition, CEZ would be able to exploit the electricity price differential between the Czech Republic and neighbouring countries where price are between c10-20% higher. The energy plan is more of a long term projects hence we expect only a slight positive reaction on CEZ’s trading if any.