Four companies shared the capacity of the virtual power plant

The resulting price is not surprising, because we have already recorded an offer with similar prices before, commented on the auction results Alan Svoboda, Vice-Chairman of the Board and Sales Director of CEZ.

The demand exceeded the offered capacity more than five times, when total 16 interested parties submitted 44 valid bids. The auction was attended by representatives of local and foreign traders and authorised customers. Four companies submitted best bids for 400 MW capacity of the virtual power plant last week. Two subjects won each one unit, other company will receive two units, and a full half of eight offered 50 MW units will be acquired by another CEZ´s competitor.

The high interest in the auction proved the fact that Europe is starting to be hungry for electricity. An anticipated decrease in production capacities in the whole region and quickly rising demand for electricity become evident, said to that Alan Svoboda, Sales Director of CEZ, and continued: in addition, the results of the auction of the virtual power plant are an important signal for the auction of "Duhova energie" energy for 2006. The wholesale auction of "Duhova energie" for 2006 from the remaining production capacity will be started by CEZ on Friday, August 8, 2005.

The costs of electricity alone make up ca one third of the resulting price for households. The remaining part consists of taxes and fees for distribution, transmission, system services, support of renewable resources, etc. These fees will be fixed by ERU in November this year; their amount is influenced, for instance, by inflation, rising renewable resource benefits and distribution assets which are rising due to the grid development. Next year, the fees will reflect, for the first time, also costs of so called unbundling, which is a separation of electricity supply and distribution, as required by the EU guidelines.

CEZ called the auction according to a decision of the Antitrust Office, which allows CEZ to keep its majority share in SeveroÄŤeska energetika, and which orders CEZ to allow access to its electricity production capacity in the total amount of 400 MW for independent subjects in 2006-2007 under a decision of the Antitrust Office. The amount is reduced to 240 MW in summer months (June, July and August). The virtual power plant is offered by auction by units in the amount of 50 MW, res. 30 MW in summer months.

Eva Novakova, Press Officer, CEZ, a. s.

9. 8. 2005