The new power-sector regulatory body decided last week on new wholesale electricity prices (between CEZ and the regional distributors) for 2001. The new maximum price will increase 4.2%, to CZK 1,232 per MWh, which we see as a good deal for CEZ. The most controversial issue was a price for system services, a component of the maximum price, where CZK 169 per MWh represents a 13% improvement for CEZ over the 2000 level. Moreover, the regulator’s decision itself is also good news for CEZ because previous disagreements between the relevant ministries resulted in fears of prolonged uncertainty about 2001 prices. If there is any market response to the news today (it was announced just before trading closed on Friday) it should be positive. We reiterate our buy recommendation for CEZ.