The demand in the auction for 500MW, so called baseload, exceeded the offer almost five times. 22 traders who validly entered the auction, and 14 out of which were successful, submitted 167 bids. It was the last valid bid that determined the auction price of this internationally traded product at 1,244 CZK/MWh (44.15 EUR/MWh). The winning bids will be, in accordance with the conditions, met in full here. The stated price is still lower than the current prices in other countries (Slovakia 45 EUR/MWh, Hungary 50 EUR/MWh, Germany 57 EUR/MWh)

Bids for other products (quartal, monthly or weekly supplies that make up the supply for end customers) were submitted by 19 traders who validly entered the auction. The entrants demanded 12.5 TWh, which was nearly 7 times more than in the previous year. However, prices were set by CEZ based on the price relations in the last years. The average increase in prices of these products was only 10.8 %. Due to the fact that this unexpectedly high demand exceeded CEZ´s production possibilities, the company had to employ the possibility of an aliquot reduction of demanded quantum for chosen products. The criterion for reductions was meeting the demanded quantum to the limit while maintaining operational safety and reliability of CEZ´s sources. Furthermore, in the effort to meet domestic demand at the utmost, CEZ has decided not to export to Germany and Austria and to direct its supplies to the Czech Republic. The electricity that has been sold to customers in Germany and Austria up to now will be supplied from electricity bought on the local market. On the top of that, CEZ has reassessed its production plan and although it is shutting down two units in the Tusimice power plant to be renewed already in June next year, it has increased the production plan for 2007 to record 57 TWh (net production after deduction of its own consumption). To compare, the highest production after deduction of own consumption that has been reached by CEZ up to now was 56 TWh.Not even this fundamental action an increase in production over the historical record and cancelling exports to Germany and Austria will enable CEZ to satisfy the demanded 12.5 TWh. Due to that, in accordance with the rules of the auction, CEZ has reduced the demanded quantum by 3.6 TWh, namely from 12.5 TWh to 8.9 TWh in the periods of unavailable output. The reduction was proportional, which meant all parties interested (19 traders) succeeded in the auction. It is evident that we could not meet all demand in full, since it ecceeded the production possibilities of CEZ. The demanded 20.1 TWh (12.5 TWh other products and 4.4 TWh sold in the auction for 500 MW, plus 3.2 TWh from the previous Virtual Power Plant's auction) represents a constituent of our total annual production, said to that Alan Svoboda, sales director of CEZ. The enlargement in the number of traders and in the quantum of sold electricity will lead to significant development of the wholesale market and competition on the market with supplies to end customers. The second electricity auction has thus contributed even more to the development of the electricity trade market environment in accordance with the rules and priorities of the EU and the Czech UOHS, which ordered the Virtual Power Plant auction two years ago, added Svoboda.Ladislav Kriz, Press Officer, CEZ, a. s.