EZ: The state energy trader should ensure prices for public institutions at regulated prices

EZ: The state energy trader should ensure prices for public institutions at regulated prices
EZ: The state energy trader should ensure prices for public institutions at regulated prices
In an interview with HN, the Minister of Finance Stanjura said that the state applied for a license for an electronics and gas store for the state company Prisko (also the Ministry of Finance), through which it will buy electronics for the public sector, i.e. ministries, bicycles, regional hospitals, at a favorable price and gave institutions. Stanjura stated that Prisko will not be a Finnish state-owned merchant, due to the time efficiency, it should only create the equivalent that will be necessary for the creation of a new company, it should retain this function for the long term. According to the law, all producers above a certain size would be obliged to sell their production at a pre-determined price, which should include production costs plus nominal profit. The establishment of this mechanism will require a change in legislation. The total volume of electricity purchases should be 20TWh per year, about a third of R consumption, purchases should start this year, with an extension for five years (HN). At first, we rate EZ today as negative. According to the information presented, the proposal of this model seems to us to be similar to the situation in France with EdF, which is surprising given the other full Czech government’s demands for the introduction of an unusual tax on profits and discussions about ceilings on electricity prices. EZ has half of its own production for 2023 pre-sold at EUR 90-100/MWh, so it would probably have to buy the missing volumes for sale to a hundred traders at the current high market prices (we roughly estimate that it could be 3 TWh) and after a hundred could later claim compensation.

The volumes of regulated electricity for a typical merchant could thus be around 13 TWh for EZ, about one quarter of the company’s annual production. Details regarding the regulated purchase price are not available, so it is not possible to accurately calculate the impact, but we roughly estimate a possible negative impact on EBITDA in 2023 of up to 10% compared to our estimates due to the decrease in the margin on this volume of production. This should be a compensatory wall in the event that an extraordinary profit tax would not be introduced in R and would be introduced e.g. only the EU price ceiling.

Vladimr Urbnek

In the field” for more than 20 years. After several years of experience from trading with valuable peppers, Vladimr Urbnek for the past 15 years, he has been devoting himself to reporting from domestic and foreign capital markets.

He considers the age to be the result of experience and ability compared to the time before the last major crisis in 2008-9.

The article is in Czech

Tags: state energy trader ensure prices public institutions regulated prices

PREV Italian Grand Prix – Information, program, stream
NEXT Part time again in the game. Or lower energy prices, companies say