According to CIA press agency, CEZ plans to increase electricity price by 15.3% y/y for medium customers, by 8.8% y/y for small customers and by 8.9% y/y for households. The price increase still needs to be approved by Bulgarian watchdog.
Our view:
We are expecting electricity sales in Bulgaria to increase by 16% y/y to CZK 14.2bn in 2007. This reflects not only increases in the electricity price but also increasing demand for electricity. We see the news as neutral.