Last year’s profit of the ČEPS Company exceeded CZK 2 billion

4/7/2017

The transmission system operator has reported last year’s profit before tax at CZK 2.072 billion. About CZK 4.7 billion has been spent on the development of the transmission system, which is slightly less than in the previous year.

The profit is higher by CZK 56 million compared to 2015. It is also higher than the planned profit by tens of percent.

“We are satisfied with the results. We anticipated more significant expenses associated with international redispatching, however, this scenario did not occur. That is one of the reasons why the profit is better than what has been estimated,” says Jan Kalina, Chairman of the Board of ČEPS, a.s.

The need for more frequent use of costly emergency remedial measures necessary to maintain
the safe and reliable operation of the transmission system was expected due to the launch of PSTs in Poland and the limited capacity at the Polish-German interconnector. The budget of CZK 120 million allocated for redispatches in 2016 was not spent in full. For the whole year,
the TSO spent approximately CZK 35 million on such measures.

“Overflows were not so extreme last year. The weather was not favorable for the renewable sources, so the generation in wind parks of northern Germany declined. In operational terms, those twelve months were relatively quiet,” said Kalina.

The largest international redispatches of the last year were implemented in January and September. On January 28, the Czech and Austrian transmission system operators increased
the generation during the day by a total of approx. 500-600 MW, while the German network operator, the 50Hertz Company, had to cut the generation by the same volume. The total volume of redistributed generation was 5,000 MWh. On September 12 to 15, there was
a non-compliance with the security criteria repeatedly occuring on the cross-border interconnector with 50Hertz, which was addressed in cooperation with foreign operators 50Hertz, TenneT DE and APG in the amount of up to 1,800 MW. The total amount of redispatched energy reached 55 GWh.

After economically efficient remedial measures are exhausted, redispatching is usually deployed as a tool for relieving overloaded power lines. It consists in changing of electricity supply from various sources by deploying generation sources in another location. This removes the overload on specific lines, while maintaining the same amount of power generated in the regulatory area.

One of the main projects of 2016 was the now completed construction of the new power line V458 Krasíkov – Horní Životice. This 107 km long 400kV line was included in the energy management system on October 10. Three of the four phase shifting transformers were delivered to the Hradec u Kadaně substation from Italy and installed. In November, the first two units were put into operation (their inclusion in the energy management system took place
in early January 2017). The transformers were designed to limit large power overflows through Czech territory in the direction from Germany to Austria, thus contributing to the reliability
of the transmission system and enhancing its transmission capacity. Another commenced project is the reconstruction of the gas-insulated substation Chodov, which is going to significantly affect the reliability of supply to the capital city of Prague. 

Financing of an extensive investment program cannot be accomplished without relying on external resources. For this reason, on September 30, 2016, the ČEPS Company has issued bonds with a total face value of CZK 500 million, 5 years to maturity and a coupon rate of 0.25% per annum. The bond issue is quoted on the Regulated Market of the Prague Stock Exchange. The main manager and administrator of the emission is Česká spořitelna.

“The bond issue is related to the long-term strategy of the company. A successful entry into
the bond market became possible partially thanks to Moody’s that confirmed our high A2 rating,” added Kalina.

Gross electric power generation from all resources in the Czech Republic was over 83 TWh. Although for the most part of the last year we remained a purely exporting country, due to a row of blackouts of major generation sources, during the year 2016 our system was a purely importing one for a total of 326 hours.
 
The national per capita consumption is also increasing. Last year it was at 6,134 kWh, which is about 96 kWh more compared to the year 2015. The maximum load of the Czech TS with
a value of 11,491 MW was recorded on December 5 at 4:34 PM, while the minimum of
4,800 MW occured ten minutes before six in the morning on August 7, 2016.

The total of 62,914 GWh of electric energy was transferred through the transmission system
in 2016.

​Press Release