The lower chamber of Parliament yesterday approved a new energy law that sets out rules for the liberalization of the power sector. The law was approved in a version similar to the draft proposed by the government earlier this year, and therefore should not have any major impact on CEZ’s stock. In the electricity market, the law envisages a “third party access” (TPA) framework for competition. TPA will allow CEZ to sell power directly to end customers via distributors’ low-voltage networks, but will also allow distributors and other entities access to CEZ’s high-voltage transmission grid (transmission being the only monopoly that CEZ still enjoys). The market will open gradually, with larger (industrial) customers having choice of supplier as of January 2002, and all customers (incl. households) having such choice by January 2006. If approved by the Senate, the law should become effective January 1, 2001.
(Ondřej Daťka)