Following to previous information, Ministry of Trade and Industry found mistake in calculation of NAP II (2008-2012). According to Minister Martin Riman, Czech Republic will consider legal complain as European Commission (EC) approved about 15% less CO2 emission allowances for the second allocation term. Note that EC approved 86.6m tons of CO2 for NAP II.
Our view:
It is still not known how the Czech government reallocates the national quota between industry sectors. The first quota was in favour of chemical industry. CEZ will most probably be forced to buy CO2 allowances for NAP II., but it will also be reflected in electricity price and thus positive for CEZ based on its production mix.