Selected Historical Financials of CEZ Group slide image

Selected Historical Financials of CEZ Group

Existing measures to address energy affordability and taxes introduced to fund these measures in Czechia Consumer Support End-customer price caps for households, small and medium-sized enterprises (SMEs) and large businesses: • CZK 5/kWh for power, CZK 2.5/kWh for natural gas in 2023 (prices for commodity without taxes and distribution fees) • For households, small gas consumers, defined public procurers and customers connected to low voltage, the cap applies to whole consumption of electricity and gas For SMEs and large businesses the cap on electricity and gas applies to 80% of the highest consumption in each month in the last 5 years For large businesses (connected to high and very high voltage) cap is applicable up to the EU financial limit on maximum support The cap for gas will also be applied to consumption to produce heat (cap does not apply to consumption of gas used to produce electricity) Suppliers are compensated for proven losses and a reasonable profit. Financing Revenues Cap - Levy on electricity generation revenues above defined price caps • (from Dec 1, 2022 - Dec 31, 2023) • 90% levy on revenues above defined caps: Nuclear EUR 70/MWh Lignite EUR 170/MWh for units above 140 MW, EUR 230/MWh for units bellow 140 MW Merchant hydro, wind, solar EUR 180/MWh No caps for hard coal, gas, pump-storage, and subsidised renewables Total annual revenue cap based on supplied volume by generation sources within a company The resulting levy is defined on an annual basis (the difference between total revenue and the total cap) and advances are paid monthly Levy is a tax-deductible expense and reduces the company's operating profit ப G Windfall profit tax Financing Windfall tax for the energy, petrochemical and banking sectors of 60% in 2023 - 2025 "Excess Profit" corresponds to the difference between the tax base and the historical arithmetic average tax base of 2018-2021 plus 20% Reasonable Profit taxed at a rate of 19%, "Excess Profit" at a rate of 79% (60% + 19%) Tax imposed on selected energy companies whose main activity is primarily generation, sales and distribution of electricity, if their decisive income exceeds specified limits Group can aggregate the historical Reasonable Profit of individual taxable companies and pay the total tax obligation for the whole group. Advance tax payments for 2023 will be based on the companies' profit in 2022. www.cez.cz/en 19
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