ČEZ ponders 10-year ahead electricity sales

Czech power group ČEZ is in talks with investment banks on 10-year forward contracts for the pre-sale of electricity produced by its coal-fired power plants, the newspaper Mlada fronta dnes reported on Thursday. The paper said ČEZ is in talks with investment banks Morgan Stanley and Crédit Agricole. The contracts would be for up to 300 MW of power a year and be worth around 3 billion crowns, around 165 million US dollars, annually. The state-controlled power giant has been suffering from a fall in electricity prices which has been partly cushioned by earlier sales before prices dropped.

Author: Chris Johnstone