The Demand for Electricity Keeps Growing Also in This Year

The demand for electricity has increased in the period from this January till April by 2.3 % (by 431GWh) compared with the same period in the last year, up to 11,117 GWh, continuing the trend from the first quarter when the demand had increased by 2.3 %. In April alone the demand increased by 2.4 %. The growth of consumption occurred in the first four months in the industry where the annual growth was 6.3 %. On the other hand, retail consumption decreased by 1.8 %. This decrease is due to higher prices of electricity for households and higher average temperature compared with the last year.

"The growth of the demand for electricity in the industry could signal a revival in Czech economy that is indicated also by other statistical data. Nevertheless, we are still prudent in our estimates of the demand for electricity for this whole year and still expect a decrease in consumption by about 0.4 %. As soon as economy starts up, however, we assume a growth in the demand for electricity that will be growing with the growing GDP, just in a lower pace. That is a rule for all steadily growing economies and also all EU countries expect a growing consumption of electricity. The consumption of electricity, however, should always be distinguished from the total consumption of powers where the decrease is realistic," said Ladislav Kriz, CEZ press spokesman.

The development of power engineering (not only in Europe) is characterized by a gradually increasing ratio of noble forms of power in the final consumption of power. The long-term trend in the EU demonstrates that the final consumption of power during the period between 1973 and 1996 had been increasing in the average annual rate of 0.5 %, the consumption of electricity, however, had been increasing in the rate higher by 2 % (2.5 %); in the period until 2005 the consumption of electricity is expected to be higher by 0.7 %, namely on the level of 1.4 %. There is no realistic reason for this trend not to appear also in the Czech Republic. The consumption of powers in the Czech Republic is expected to be decreasing until 2005 in the rate of 0.4 % p.a., the consumption of electricity will be, however, increasing in the average rate of 0.9 % (i.e. in a lower rate rather than in the EU).

No EU country expect a decreased demand for electricity in its forecasts until 2005. Assumed rates of growth are, however, lowered to 1.4 % (except not only for less developed countries, such as Greece, Ireland and Portugal but also for the Netherlands and Finland with their annual growths between 3 and 4 %).

The development of the demand for electricity is proportional to the development of the gross domestic product. It can be stated for sure that the consumption of electricity will be growing with the start-up of Czech economy, though it will be accompanied with annual decreases in power demands in the creation of GDP. The potential of the growth of electricity consumption is concentrated in the sector of services.

Ladislav Kriz, press spokesman of CEZ

9. 6. 2000