The Czech Press Agency informs that the market for system services is some CZK 8 bil. a year. Apart from CEZ, five other electricity producers have certificates for system services supplies this year. System service fees substantially boosted CEZ’s profits in H1 2001; we estimate that CEZ could receive more than CZK 5 bil. from system service fees this year. Positive.
Today, the Cabinet will discuss a Ministry of Industry proposal whereby CEZ’s transmission assets, operated by the 100%-owned subsidiary CEPS, would not be required to be sold back to the state one year after CEZ privatization, as was originally planned. Instead, only a 3% ownership stake in CEPS would be acquired by the state in order to keep some influence in the company. The Ministry of Industry also proposes to sell the state’s whole 67% stake in CEZ (previously the Cabinet intended to sell 64%, as the remaining 3% would allow it to keep at least partial influence over CEZ) and to contractually guarantee the influence of the state. Should the Cabinet approve the proposals (seen as likely given the increased fiscal pressure), CEZ would keep the valuable transmission monopoly (though its value will be determined by the sector regulator’s conduct). Positive.
(Jiri Soustruznik)