Czech Republic Segment

Framework conditions in the Czech Republic

Economic growth in the Czech Republic was moderate in the first half of 2022/2023, while inflation was still very high in the reporting period, fluctuating between 15.0% and 18.0%. The unemployment rate remained close to full employment, just like in the 2021/2022 fiscal year.

High energy costs again continued to be a major challenge in the Czech Republic Segment in the first quarter of the new 2022/2023 fiscal year. As of 1 January 2023, the Czech government ratified a price cap for electricity and gas; this had a positive impact on the energy procurement market in the Czech Republic Segment.

High fuel prices, in particular, were relevant for the heating unit of Energie AG's Czech Republic Segment. In the case of water supply and waste water management, notably higher market prices compared to the first half of 2021/2022 impacted on electricity expenses for water and waste water treatment and allocation. However, a number of efficiency campaigns and the consideration of the increased energy expenditure in costing have greatly minimised these effects.

The Czech koruna continued to steadily strengthen against the euro in the course of the 2022/2023 fiscal year. The exchange rate was around EUR/CZK 23.5 towards the end of the reporting period.

Business development in the Czech Republic Segment

In the first half of the 2022/2023 fiscal year, the Czech Republic Segment generated sales revenues of EUR 120.3 million in its water and heating units. This meant an increase of 21.5% compared with the previous year, which was mainly attributable to the price increases and exchange rate effects in the reporting period along with higher sales revenues in the services unit. In addition, the sales revenues of the Czech Republic Segment now also include the activities of RATE s.r.o., which were not considered in the previous year's balance sheet.

The EBIT in the Czech Republic Segment amounted to EUR 4.8 million in the reporting period. This corresponds to a fall of 25.0% (previous year: EUR 6.4 million); this is primarily attributable to significantly higher energy expenses compared with the first half of 2021/2022, and was only partially offset by price increases for end users.

Stable development of sales volumes in the Czech Republic

In the Czech Republic Segment, a total of 24.5 million m³ of drinking water and 22.8 million m³ of waste water were invoiced in the reporting period. This corresponds roughly to the previous year's level.

Invoiced drinking water volume

in m³ mill.

Invoiced waste water volume

in m³ mill.

All major tenders for drinking water and waste water were won; the most important of these being the tenders in Prachatice and Lipno nad Vltavou (ČEVAK a.s.), which each have a running period of 10 years.

To compensate for high energy prices, energy efficiency campaigns were successively launched at operational investments. At the Budějovice sewage treatment plant, for example, biogas created by recycling sewage sludge is now used in a combined heat and power (CHP) plant to generate electricity and heat, with surplus quantities being fed into the public grid. At the Chrudim sewage treatment plant, the ventilation system for the digestion process is being renewed. In addition, photovoltaic projects are being pushed forward with a view to reducing requirements for external energy.

The heat sales volume in the Czech Republic amounted to 146 GWh in the reporting period, which is 10.6% above the previous year's figure (132 GWh) despite the mild winter. The increase was mainly attributable to the acquisition of RATE s.r.o. as of 3 January 2022.