A Czech joint-stock company developing into an international group

The strategic target of CEZ Group is to become a leader on the electricity markets in Central and East Europe. Apart from generation and sale of electricity the company also operates in the filed of telecommunications, IT, nuclear research, design, construction and maintenance of electricity facilities, raw material extraction and generation of power by-products. At the same time CEZ Group rates among the three largest producers of thermo-power in the Czech Republic. The company services over 7 million customers.

We observe the European Union regulations

Combining electricity generation and distribution in CEZ Group and observing the effective regulations of the European Union, the structure of the Czech power engineering has got closer to the common West European structure. Since 2005 it has been implementing the principle of strict unbundling of the electricity distribution as a regulated activity from electricity trade. The new structure of the Czech power engineering has created opportunities for development of strong competition.

We generate effectively sixty thousand GWh electricity a year

CEZ generates almost three-thirds of all the electricity generated in the Czech Republic. CEZ Group operates 2 nuclear power plants, 15 thermo-power plants on the territory of the Czech Republic, 3 thermo-power plants abroad, 34 hydro-power plants, including 3 pumped storage hydropower plants, 2 locations with wind power plants and 1 photovoltaic (solar) power plant. This diverse portfolio of power plants enables the company to be flexible to meet the demands of its customers and at the same time to provide for all the services necessary for the reliable operation of the electricity network.

Distribution pursuant to the regulations for unbundling of the activities

The regional electricity companies, incorporated in CEZ Group, used to have trade functions, apart from the distribution of electricity to end-user. In 2005 the present territorial division of the distribution companies from CEZ Group was replaced by the so-called process-based division, which within the framework of the EU regulations is based on the principle of strict unbundling of electricity distribution as regulated activity from electricity trade.  The key activities related to electricity distribution and electricity trade were transferred to new, independent companies.

We trade locally and abroad

The demand of electricity on the fully liberalized Czech market is constantly growing every next year. A considerable part of the power, generated by CEZ Group is for the home market, and the rest is directed to exports.

We are widening the range of services offered to our customers

To improve customer service, to utilize production capacity in a better way, to increase competitiveness and strengthen the positions of CEZ Group on the new markets, the company is developing a network of customer service centres and has opened trade representative offices in a few countries, neighbouring the Czech Republic.

We invest in the environment

In the last few years the power company CEZ has invested over 200 billion Czech crowns in its development and in environmental protection. Since the end of 1998 all thermo-power plants of CEZ have been fitted with equipment for minimization of the emission of substances that pollute the environment.

The technologies for minimization of emissions and their parameters, currently used in the Czech Republic, are at the level of the best available technologies, recommended by the EU and create an opportunity to meet the international requirements of the new law regulation of environmental protection.

We support the use of renewable sources

The power company CEZ intends to increase the use of renewable sources in the next few years.  In the next 15 years CEZ intends to invest the total amount of 30 billion Czech crowns in their development. About 20 billion of this investment will be used for construction of new windmills. That is why all activities, related to use of renewable sources, except the ones for power generation from biomass, were separated in the company CEZ Renewable Sources.

We achieve successes as a part of the European power engineering

Apart from the acquisitions in leading Czech companies, CEZ Group is represented and has acquired considerable assets of some foreign companies in Central and South East Europe. The vision of CEZ Group is to become a leader on the electricity markets. Steps toward this goal were taken by obtaining a majority stake in three Bulgarian distribution companies, and namely Electricity Distribution Stolichno AD, Electricity Distribution Sofia Oblast AD and Electricity Distribution Pleven AD (incorporated in CEZ Bulgaria AD), a Bulgarian power plant in Varna, as well as succeeding in a tender for the Romanian distribution company Electrica Oltenia. A strategic market for CEZ in Central Europe is Poland, which has been a good partner of Czech power engineering for years. In Poland CEZ Group acquired a majority stake in the Upper Silesian power companies Elektrocieplownia Chorzow Elcho OOD and Elektrownia Skawina AD.

Romania and CEZ Group

At the end of 2005 the electricity distribution company Electrica Oltenia AD, of majority stake holder CEZ Group, increased the number of end-users of CEZ Group by 1,4 mln. The main target of the investments of this company is to improve the technical condition of the equipment, to minimize losses and increase efficiency and reliability, to provide for electricity supply parameters based on negotiations, to restrict the harmful effects on the environment and to provide for sale of electricity to the new customers.

As in the rest European countries which work on the accession to the EU, it is required by the EU regulation to separate the electricity distribution as a regulated activity from electricity trade.

CEZ Group acquisitions in Poland

In Poland CEZ Group has a representative office in Warsaw.  The goal of the office is to enhance the acquisition processes and electricity trade on the territory of the country.

CEZ Group supported its interests in the Polish power sector by its succeeding in tender for the stake hold of the Upper Silesian power companies Elektrocieplownia Chorzow Elcho OOD and Elektrownia Skawina AD. In Sileasia CEZ Group operates 1 693 MW installed capacity.

CEZ Group in Central and South East Europe

 „To be a leader on the electricity market in Central and South East Europe”

This the vision of a company that has managed for the short two year period of time to turn into a multi-national company comprising of over 90 Czech and foreign companies. At present the group has assets in the Czech Republic, Bulgaria, Romania and Poland and manages trade offices in Slovakia, Serbia, Kosovo and Germany.

Other trade representative offices

CEZ Group is represented in Germany by the company CEZ Deutschland GmbH, which also deals with possible acquisition or investment issues.

CEZ Group has a representative office in Bratislava, too. At present it is the largest foreign supplier of electricity there and is ready to transfer its know-how and infrastructure in the field of trade with CO² permits. This way it will enhance the development of the opening end-user market.

The Hungarian company Magyarország Kft., which was renamed to CEZ Hungary was acquired to create better conditions for electricity trade on the territory of the country and to provide for the access to the Hungarian transmission network. Since March 2006 CEZ Hungary has been granted a licence for electricity trade.

To monitor other trade and acquisition opportunities CEZ Group uses its new trade representative offices in Serbia and Kosovo.