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21. 8. 2006

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After the auction for the ?Virtual Power Plant?, CEZ is continuing electricity wholesales for the next year on market principle basis.

After the first wholesale electricity offer for 2007 in the ?Virtual Power Plant? auction, CEZ is now continuing to offer another electricity volume and other wholesale products. The price of the most important product ? band supplies for the next year will be determined by the traders themselves in the auction again. This auction is not imposed on CEZ by the UOHS (Office of Fair Trading), but it is a voluntary action of CEZ.

The company has that way explicitly declared its support for development of wholesale electricity market, according to foreign model, and will accept market prices just as they arise in the auction. CEZ has offered 500 MW for the auction, which, together with the volume sold before, supplies of independent producers and imports into the Czech Republic, represents the remaining volume needed for full coverage of the needs of traders supplying electricity to end customers in the country.

Final prices of other products, demanded especially by traders with supplies to domestic end customers, will be determined indirectly by the very demand of the traders. However, as in the previous years, the basic ceiling selling price has been fixed for these products. It is based on the price structure in the last years and also on the relations which exist between single products on foreign markets as well. While the band product price according to the „Virtual Power Plant“ auction has increased by 17.1 % compared to the previous year, maximum increase in other products prices fixed by CEZ is lower. In the case of last year´s demand structure in the auction of „rainbow electricity“ it is 10.8 %. Similarly to the previous years, CEZ reserves the right to reduce the final price in this part of the auction, in case the demand structure is favourable, but also to cut the demanded volume of single products in case the supplies could not be effectively covered by CEZ sources. Due to lower prices of other products, the resulting wholesale rise in prices for electricity suppliers to end customers in the Czech Republic will be lower than the increase in the band supply price given by the market. Particular results will be announced by CEZ on August 30 after the evaluation of the second round of the auction.

CEZ Prodej (Sale), s.r.o., which is the only CEZ Group electricity supplier to end customers in the Czech Republic, will gain wholesale electricity supplies from CEZ under the same conditions they will be sold by CEZ to other traders. So, equal attitude of CEZ to all traders and equal competition on the market of end customers will be secured.

All conditions of the second auction are available on www.cez.cz/aukce

 

Ladislav Kříž, Press Officer, CEZ, a.s.