Falling electricity prices impact CEZ's profits - CFO

Prague, Nov 11 (CTK) - Electricity prices on the energy market will continue to fall next year, pushed down mainly by falling gas prices and lower emission allowance prices, energy company CEZ's board member and CFO Martin Novak said in an interview with CTK today.

According to him, falling electricity prices on the market have a crucial impact on the company's finances, reducing operating profit by Kc10.5bn year-on-year this year. Next year, the decline is likely to be even greater.

"Electricity prices are being pushed down by the situation on the markets. The outlook for next year clearly shows a decline. It is already apparent on the exchanges that the price of electricity is falling, and we will certainly not reach the price we have now," said Novak.

The company sells energy up to three years in advance. While average electricity prices this year are over EUR120 per megawatt hour (MWh), next year they will be around EUR94 per MWh. "This is a relatively sharp drop in the selling price," Novak noted. The group has currently sold 79 percent of its production for next year at these prices.

According to CEZ's outlook, average electricity prices are expected to continue falling in the coming years. They are currently around EUR83 per MWh for 2027 and EUR76 per MWh for 2028.

The impact of falling electricity prices on the energy market is already evident in CEZ's financial results this year. Compared to last year, average electricity sales prices have fallen by approximately EUR10 per MWh.

Novak pointed out that reduced electricity prices are gradually being reflected in customer bills. "We reduce prices several times a year," he said. CEZ recently announced price reductions for 1.6 million customers with open-ended contracts.

CEZ is the largest energy company in Czechia, with the state as its majority shareholder holding approximately 70 percent of shares through the Finance Ministry. The company made a net profit of Kc21.5bn in the first three quarters of this year, down by about 6.5 percent year-on-year. On the other hand, operating profit (EBITDA) rose by almost 3 percent year-on-year to Kc103.2bn.

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