SEWRC reduces CEZ Electro gross profit by 50% (NEGATIVE)

SEWRC reduced the regulated gross profit of CEZ Electro to 2% of cost from 3% in the previous decision. This translates into 50% (c. BGN 7m) lower gross profit. Additionally, the regulator decided to compensate only 15.9% (BGN 8.3m) of the company’s uncompensated renewable energy cost in the period 1 July 2012 – 31 July 2013. However, the company will be compensated only after it pays all of its delayed payments to the public supplier NEC. Recall that the end suppliers started netting-off their payables to NEC with the uncompensated cost for renewable energy following the final decision of the Supreme Administrative Court, which declared illegal the “methodology for compensating the expenses of the public supplier and the end suppliers, occurred as a result of their obligations to buy the electricity produced from renewable energy sources and cogeneration facilities”.