Czechs to make CEZ sell power on exchange -report

...mainstream daily Mlada fronta Dnes reported on Wednesday.

The daily said, without quoting the source of its information, that the Industry and Trade Ministry would outline the plan -- aimed at keeping a lid on electricity price hikes -- later on Wednesday.

Minister Martin Riman holds a news conference on a new price-setting mechanism for electricity at 3 p.m. (1400 GMT).

Riman has previously blamed CEZ's existing auction-based pricing system for spurring what he said had been an excessive rise in electricity prices.

The Prague Stock Exchange is not licensed to organise trade in commodities.

But the daily reported it planned to create a subsidiary as a commodities exchange and obtain the relevant licence.

CEZ is the Czech Republic's most profitable company, with 27.3 billion crown ($1.30 billion) profit last year, and the largest electricity utility in central Europe.

But analysts have said any change in CEZ's pricing rules was unlikely to prevent power prices in the European Union member state from creeping up towards higher levels in neighbouring countries in West Europe.

[PRAGUE/Reuters/Finance.cz]