William Malcolm

CEP’s Sees Profits Fall by 16% In 2020

Last year, the operator of the domestic energy transmission system ČEPS’s profit before tax fell by 15.8 percent to 3.4 billion crowns. While total revenues rose by almost 13 percent to 201.3 billion crowns compared to 2019. The company invested 5.9 billion crowns in the development and modernization of the transmission system, roughly 800,000 crowns more than the year before.

“Our main goal is to strengthen the infrastructure and transmission capacity of the system. The most significant investment construction projects in the past year include, for example, the completion of the construction of a new double line V490 / 491 Přeštice – Vítkov in the corridor of the original 220 kV line and the commissioning of a new encapsulated 420 kV Vítkov substation. Last year, for example, work also continued on the reconstruction and expansion of the Kočín transformer station,” said Martin Durčák, Chairman of the Board of ČEPS, today.
The company pointed out that, as a regulated entity, it can only achieve the level of profit set by regulatory parameters determined by the Energy Regulatory Office (ERO). Regulated parameters include permitted costs, depreciation, and profit. If the achieved fact deviates from the set values in a given year, correction factors are determined, which will be included in the following period’s regulatory parameters. They thus affect the financial results of a company with a two-year shift.

ČEPS’s total pre-tax costs last year amounted to 24.9 billion crowns. The company further stated that last year it transmitted electricity with a total volume of 65,058 gigawatt-hours (GWh). According to her, the maximum load of the transmission system (11,649 megawatts) was at 10:00 on 22 January last year and the minimum load (4654 megawatts) on 06 July 06:00. “In terms of foreign cooperation, the Czech Republic was an export. The total balance of the Czech Republic was minus 10,153 GWh of electricity,” the company added.

ČEPS operates in the Czech Republic as the exclusive transmission system operator based on an ERO license. It maintains, renews, and operates 44 substations with 79 transformers and lines with a total length of almost 5,700 kilometers. One hundred percent of the company’s shares are owned through the State Department of Industry and Trade.