The ČEPS transmission system will launch a new emergency support service in 2028 to protect against blackouts. July’s inflation figures definitively confirmed a year-over-year increase of 1.7 percent—fuel prices rose, while food prices remained stable. The Prague Stock Exchange is edging higher, and analysts have raised their target price for ČEZ shares. The Czech economy remains below the CNB’s inflation target and below the eurozone average.
ČEPS, the operator of the domestic transmission system, will launch a new type of guaranteed ancillary service called “System Restoration Capability” starting in 2028. Next year, therefore, it will hold a competitive bidding process to select power plants that will guarantee they can independently restore operations and help re-establish electricity supplies in the event of a grid failure or blackout. ČEPS informed ČTK of this development.
Inflation rose year-over-year to 1.7 percent in July from 1.5 percent in June, the Czech Statistical Office confirmed on Tuesday. The average 12-month inflation rate reached 2.0 percent. Rising fuel prices in response to oil price trends contributed to this slight acceleration, while food prices remained relatively stable. Inflation thus remains well below the eurozone average, which stands at around 2.9 percent.
The Prague Stock Exchange rose slightly on Wednesday, with the PX index gaining 0.15 percent to 2,766.67 points. Analyst Emanuele Oggioni of Kepler Cheuvreux raised his target price for ČEZ shares from 1,100 to 1,150 crowns, while maintaining his “Reduce” rating. The markets are digesting ČEZ’s first-half results and management’s comments on future developments.
Following the release of the half-year results, ČEZ CFO Martin Novák ruled out the possibility of a return to or extension of the windfall tax. He also pointed to the decline in electricity prices on the market, which will be reflected in the results in the coming quarters. The results of the Gas Distribution division remain a positive sign for the group, as its operating margin is growing despite an overall decline in the group’s revenue.
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