CEZ Launches Czech Retail Gas Sales, Mulls Slovak Retail Offer
June 03 2010 - 6:59AM
Dow Jones News
Czech 70% state-owned power company CEZ AS (BAACEZ.PR) this week
is launching sales of natural gas to retail customers in the Czech
Republic and will decide "in a matter of days" whether to launch
retail gas sales in Slovakia, CEZ's head of sales Alan Svoboda said
Thursday.
The company said that through 2011 it guarantees Czech retail
customers a discount of at least 5% on the end price of natural gas
when compared to the price offered by the Czech Republic's dominant
gas importer and distributor, RWE Transgas, which is a unit of
Germany's RWE AG (RWE.XE).
CEZ buys gas on regional spot markets and via medium term
contracts of two and three years in duration at cheaper prices than
the price paid by RWE, Svoboda said, without providing sales or
pricing targets.
RWE's Czech unit is locked into long-term contracts of up to 20
years mainly with Russia's Gazprom OAO (GAZP.RS) at prices well
above current market prices, he added.
Recently CEZ increased its exposure to the natural gas markets.
Later this year, CEZ will launch construction of its first natural
gas-fired power plant in Pocerady, north of Prague. The plant will
be operational from 2013.
The Czech company also plans to build and operate several
gas-fired generators in Slovakia and Hungary and has a strategic
alliance with Hungarian oil and natural gas company MOL Nyrt
(MOL.BU) via CEZ holding a 7% stake in MOL.
For roughly one year CEZ, previously focused only on electricity
generation and sales, has sold natural gas to industrial customers
in Slovakia and the Czech Republic.
-By Sean Carney, Dow Jones Newswires; +420 222 315 290,
sean.carney@dowjones.com
Go to http://blogs.wsj.com/new-europe for the new Dow Jones blog
on Central and Eastern Europe, covering business, politics, society
and more, written by our correspondents across the region.
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