According to Energy Regulatory Office (ERU), net domestic electricity consumption decreased by 9.2% y/y to 5,528 TWh in January. This decrease was caused by high temperature and outage of electricity due to windstorm Kyrill. On other hand there was demand for electricity in foreign countries so the export of electricity increased by 27.2% y/y to 2.74TWh. One of the target market was Slovakia that due to complete shut-down of nuclear block in Jaslovske Bohunice has to import electricity.
Our view:
We see the mild winter in the Czech Republic as negative for CEZ business, however we would see this news rather neutral based on the fact that CEZ announced its updated guidance for the 2007 at the end of February, which undisputatedly took milder weather conditions into consideration. Similar figures could be expected also for February, once they are released as the weather was considerably milder than year before.