CEZ shares were close to CZK 900 on Monday. At these prices, they look cheap, even with the introduction of electricity…
CEZ shares are very popular among investors and are among the most frequently traded titles on the Prague Stock Exchange. While in the first half of the year CEZ experienced growth of tens of percent, which was mainly caused by the increase in the price of power electricity, the summer was more in a negative mood, when the share price was subject to a number of negative factors, including those about extraordinary taxation by the government.
Electricity price cap
On Friday, September 2, proposals regarding the regulation of the energy market began to leak to the public at . Apparently , the European Commission supports an EU-wide cap on electricity prices for plants with low production costs, i.e. nuclear plants, renewable energy sources, and there is also mention of lignite plants. Nuclear and RES make up the majority of CEZ's product mix, with production from these sources accounting for around 60% of the company's total output. From this perspective, CEZ would…
Over the weekend, more information was leaked, according to which a price cap of EUR 200/MWh is reportedly in play. According to Jan Raška of Fio banka, this would indicate that CEZ would sell its power electricity at a price of around EUR 130/MWh next year . In the current analysis, Fio banka's analysts estimate a selling price for next year of close to EUR 150/MWh and a price of around EUR 130 in the longer term.