CEZ has reportedly signed one-year supply contracts with four out of eight REAS (regional power distributors) and one more contract should be signed in two weeks. The contracts include “take-or-pay” schemes. Based on that, REAS will compensate CEZ for discrepancies between weekly planned and realized electricity purchases. While REAS prefer to purchase electricity on the basis of short-term settlements, CEZ (and its suppliers) favor one-year contracts which eliminate uncertainties related to supply. Although significant delays in the signing of supply contracts between CEZ and REAS are not unusual, the stock could react positively to the news.
(Jiří Soustružník)