Czech electricity network operator (CEPS) and it German counterpart E.ON Netz agreed that 200 MW of crossborder capacity, initailly reserved for emergency situations to balance thr grid from fluctuations will be offered in auctions as of April 1. According to CEPS, total offered capacity between the Czech Republic and Germany will remain almost unchanged.
Our view:
As CEZ decided to shift its exports in 2007 from Austria and Germany to Slovakia and as this is only a marginal capacity increase we expect limitied downward pressure on cross-border fees. These were auctioned at the price EUR 5/MWh for this year. We believe the news to be neutral for CEZ.