According to chairman of PSE, Petr Koblic, comodity exchange should be launched in June. Comodity exchange will serve as a market place for electricity production of CEZ and other smaller producers. Should the exchange gains popularity among brokers and customers, CEZ plans to gradually shift all its production there. Mr. Koblic sees 20-30% of CEZ production to be sold via exchange this year as a success.
Commodity exchange will make pricing process more transparent, however will be further driven by market forces. As there is increasing demand for electricity in the region and shut downs of generation assets we see further price increases to continue going forward and converge to German price levels which permanently oscilate in the range of EUR 52-57/MWh. As the concept of commodity exchange has been presented previously we see this news to be neutral for today’s trading.