ČEPS's pre-tax profit rose 57 percent to 6.6 billion Kč last year in Czechia

ČEPS, which operates the electricity transmission system in Czechia, saw its pre-tax profit rise to 6.6 billion Kč last year. This was 57 percent higher than in 2021. The company's total revenue rose by 98.3 billion year on year to 173.7 billion Kč. Pre-tax costs also increased, rising from approximately 71 billion Kč in 2021 to 177.8 billion Kč last year, an increase of 150 percent. This is according to figures in the company's press release today, which the Czech News Agency compared with figures for the previous year.

The company pointed out that as a regulated entity, it can achieve only the level of profit set by regulatory parameters determined by the Energy Regulatory Office (ERÚ). Regulated parameters include permitted costs, depreciation and profit. If actual results deviate from the set values in a given year, correction factors are determined and incorporated into regulatory parameters for the following period. They thus affect the company's financial results with a two-year lag.

ČEPS's revenue rose by around 130 percent year on year last year. “Revenues from the sale of licensed transmission system operator services—namely, revenues from capacity reservation and network use, system services and other licensed services—accounted for 91.4 percent of total revenue,” said ČEPS Chairman of the Board Martin Durčák.

In 2022, the ČEPS electricity system transmitted 68,624.5 gigawatt-hours (GWh) of electricity. This was 98.1 GWh less than a year earlier. The volume of energy transmitted is affected by changes in economic conditions as well as other factors, such as the weather.

ČEPS invested nearly 5.52 billion Kč in developing the system last year. A year earlier, the company spent 4.96 billion Kč on acquiring fixed assets.

ČEPS is the sole operator of the transmission system in the Czech Republic, operating under an electricity transmission licence granted by the Energy Regulatory Office pursuant to the Energy Act. It maintains, renews and develops 44 substations with 79 transformers, some of which are used to transfer electricity from the transmission system to the distribution system, and more than 5,700 kilometres of lines. The state owns 100 percent of the company's shares through the Ministry of Industry and Trade.