CEZ: Investments, after energy price increase
04/06/2011 08:00
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CEZ confirmed the plan for taking a loan of 100 million EUR from EBRD
and IFC banks, in order to make investments in the electric network that
continues to be in a very bad shape.
For this reason, the company declared that if the level of losses will continue to be high, it will affect price increase of energy bills.
CEZ has been arguing for a long time the possibility of increasing prices, in support of its plan for investing in the network.
The company confirmed that the investment plan will not stop. This plan is predicted to be 5 billion ALL for 2011, but for decreasing technical and non technical losses, more expenses are still needed.
If cashing incomes will remain in unsatisfactory levels, far from guaranteeing ambitious investment plans, CEZ will be obliged to take loans from foreign banks, otherwise the network will not be improved and losses will remain high.
The higher the losses, the bigger are the possibilities for increasing energy price. But even the 100 million EUR loan from EBRD and IFC requires guarantee from CEZ financial stability.
For this reason, the company declared yesterday that it is about to take a decision on the fate of the “rotten” electrical network.
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