The European Commission (EC) suggested a transition period until 2008 for the implementation of excise taxes on coal, natural gas and electricity in the Czech Republic. These taxes are obligatory in the EU as of the beginning of 2004 (Czech Press Agency). The postponement itself is positive but expected, and thus the stock should not react.
The taxes will negatively affect CEZ´s performance after 2008, with the magnitude of the effect being subject to the so-far unclear structure and size of the taxes. The transition period still needs to be approved by the Council of the EU, but this is generally expected.
Jitka Oppitzová