There is further uncertainty about Czech electricity prices for next year. The ministry of industry proposal, that favors CEZ, has been blocked by the ministry of finance, who think that the proposed prices would put independent power producers at risk. The key new issue is a payment for so-called system services, the cost of which is borne by CEZ and not by the independent power producers, and the ministry of industry seeks to redress that. The ultimate decision may be postponed until next year, when a new regulatory body comes into being. Continued uncertainty could be negative for the stock, though ultimately the price changes are very likely to be beneficial to CEZ.
Separately, the German government approved two days ago a new energy law, which allows the government to stop electricity imports from plants that do not meet environmental and safety criteria. This measure is meant to be used if German exporters are not able to export power on the same conditions as it is imported in Germany. CEZ claims it meets European standards in these respects. CEZ would not meet some stricter German standards, if these are applied, but neither would many other European companies (e.g. French), according to CEZ. This is a recurring issue, potentially negative for CEZ, but we expect only a modest response, if any, today.
There will be trading on the Prague stock exchange on December 27, 28, 29, and then again on January 2. Merry Christmas to you all.