CTK informed that Energy Regulatory Office expects to increase fees for distribution, transmission, system services, and renewable resource support by approximately 4% y/y. Thus electricity for households should increase by some 8 to 9% y/y as electricity price for households is created by some 40% of electricity itself, 16% by VAT and 44% by mentioned fees. This is slightly above the first estimates of 6 to 8% speculated in the press earlier.
We were expecting the increase in household electricity prices to be about 8%, so indicated increase would be marginally positive from our point of view. CEZ benefits on this increase due to distribution fees. At the end of August wholesale electricity price for 2007 increased by 16.9% y/y, which was taken positively. However, the final decision of ERU on electricity price increase should come only in November.