High demand for CEZ´s electricity from the virtual power plant

The first round of the auction, where prospective buyers bid for power-station capacity of CEZ with the total output of 400 MW, reduced to 240 MW in summer months, took place today. The obligation to offer this capacity was imposed on CEZ by the Office of Fair Trading (UOHS) this March, when it allowed CEZ to keep its majority share in the fifth distribution company

17 prospective buyers in all, who fulfilled all formal requirements given by UOHS and the organizer, entered for the auction. The interested parties also made a deposit for a submission of total 52 bids for 8 units being offered by 50 MW. 16 interested parties submitted 44 valid bids today. So demand exceeded the offered capacity more than five times. The auction was attended by representatives of local and foreign traders and authorised customers.

CEZ put only minimal cost price per a capacity at calling the auction. A price for produced electricity was assessed upon real costs separately for basic and peak energy. Ask prices as well as the order of winners are being assessed till this time.

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: At this time, the bids will be evaluated and prospective buyers will be informed about the results of the auction.

CEZ is obliged 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 amounts 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.

The wholesale auction of rainbow energy for 2006 from the remaining production capacity will be started by CEZ after the auction for virtual power plant.

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

3. 8. 2005