IERN International Energy Regulation Network

Generation market is partially privatised and is dominated by state-controlled ČEZ Group (Skupina České energetické závody), two thirds of shares state-owned, one third of shares owned by other natural and juridical persons). ČEZ Group generation units include 10 large coal-fired, 2 nuclear, 30 hydro (incl. small), 1 wind and 1 photovoltaic power plants.

Five other minor players and a multitude of other marginal generators often also engaged in heat production: for instance Chemopetrol a.s., United Energy a.s. (both fully privatised,), and Mittal Steel Ostrava a.s. (partially privatised).

Exclusive license as electricity market operator granted to public company Operátor trhu s elektřinou (OTE; 100% state-owned), responsible for setting up markets for spot trades and balancing, as well as their clearing and settlement, and for registration of executed bilateral contracts (which represent about 99% of all trades).

Balancing market similarly dominated by ČEZ a.s. (about 60% in 2007).

The sector is partially privatised.

100% state-owned Česká energetická přenosová společnost (ČEPS, a.s.) solely licensed as TSO under RTPA regime. ČEPS participates in the Coordinated Auction Office, a participation of 6 TSO from Central Eastern Europe.

Legal unbundling from supply mandatory since 2006 for major DSOs (with more than 90,000 connected customers).

• E.ON Distribuce a.s. (consisted of 2 former regional distribution companies) and ČEZ Distribuce a.s. (consisted of 5 former regional distribution companies) are the legally unbundled entities created by E.ON-controlled and ČEZ-controlled formerly-integrated regional electricity distribution companies.
• PRE Distribuce a.s. (majority owned by Pražská energetika Holding a.s. which is controlled by the City of Prague).
• Several dozen operators of local distribution systems (276)not subject to unbundling obligations.

The sector is partially privatised.

Since 1 January 2006 full market opening, including households.

Three major suppliers accounting for about 95% of demand: ČEZ Prodej s.r.o., E.ON Energie a.s. (resulting from the mergers of supply businesses of ČEZ-controlled and E.ON-controlled formerly integrated regional electricity distribution companies) and Pražská energetika, a.s. The total number of issued electricity trading licences is 279.

The sector is fully privatised. RWE Transgas a.s. (100%-owned by RWE Gas International BV) is a main importer of natural gas, mainly from Russia (70-80%) and partly from Norway (20-30%), on the basis of long term agreements with Gazexport and a consortium of Norwegian companies.

Other market players: Wingas (owned by German company Wintershall and Russian Gazprom), Vemex (majority owner: shareholders of Gazprom subsidiaries) and Moravske naftove doly a.s. (more than 50% of shares owned by SPP Bohemia a.s.)

Balancing Centre (former Central Gas Dispatch Centre, CGDC) jointly set up by the 12 most important Czech gas businesses. Eight regional dispatch centres. The Balancing Centre is responsible for monitoring of planning, production, supplies and consumption, the capacities and performance of the transmission and distribution systems, underground gas storage facilities, line pack etc.

All trade on the wholesale gas market in the Czech Republic is based on bilateral contracts.

The sector is fully privatised.

RWE Transgas Net s.r.o. is the legally unbundled entity created by RWE Transgas a.s. which holds exclusive license for gas transmission and transit operation (on regulated TPA terms set/approved by ERO), RWE Gas Storage s.r.o is from 1st May 2007 legally separated from RWE Transgas, a.s. and operates six underground storage facilities (with TPA).

Moravské naftové doly a.s. and SPP Bohemia a.s. each owns and operates one gas storage facility.

Eight gas distribution companies with more than 90,000 connected customers and 92 smaller gas distribution licensees. Legal unbundling from supply mandatory since 2007 for eight major DSOs. Local distribution system operators not subject to unbundling obligations.

Majority shareholding is held by RWE Transgas or RWE Gas International BV in six out of eight regional distribution companies, one regional distribution company is owned by E.ON Czech Holding AG, one by Pražská plynárenská Holding a. s.

The sector is fully privatised.

Traders of former regional distribution companies are active in the supply sector, but to large extent only in their former supply region. New entrants (73) which operate on the upstream market usually serve directly big customers on the downstream market, their market share is increasing, but still is less than 5 %. The biggest new trader is VEMEX, a.s.

Since 1st January 2007 gas market is fully opened (including households).

Opening of Prague Power Exchange on 17 July 2007. Trade on PXE is based on standardised commodity futures contracts.

From 1st January 2007 gas market model (organized by decree of Energy Regulatory Office) was changed in reaction to regulation No 1775/2005/EC and requests from market participants for more flexible model. The main change is the change from point-to-point capacity reservation model to entry-exit system. Together with other changes (increasing balancing tolerance, virtual trading point, new system of imbalance charges, capacity allocation rules, transparency) market model became more flexible and enabled to increase competition on the gas market.

Energy Act 458/2000, last amended 2004 (consolidated version)

Act on Promotion of Use of Renewable Sources 180/2005

Act on Energy Management 406/2000