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Thank you very much for your Email and the trust you have put into our company.

We are aware of the press coverage of the topic you are addressing in the Polih press. We will prepare a release to the market in due course, so here just briefly our general view.

It is important to distinguish two different issues:

1. The change to the Renewable Energy Law, which allows the energy regulator to reduce the FiT by more than 5% to a level where it will provide investors with a capital return in 11 years, apparently in line with other RE sources. The 11-year-return measure is meant to be a simple return of capital, i.e. not taking into account cost of capital. This says a lot about the sophistication of Czech parliament, but so be it. However, it is absolutely correct to reduce the FiT in order to reflect the 40% reduction in investment costs over the past two years. The FiT regime is designed to provide a stable framework and a fair return to investors, whereas at the moment it provides massive excess returns. This leaves PV open to a lot of criticism and excessive reactions by its opponents. To sum up, the indicated FiT reduction by 25-32% for next year will bring investment returns to a level that will continue to provide very attractive long term returns and we expect business to continue in the Czech market for the dedicated long term players like ourselves.

2. The proposed new regulation by the Czech Ministry of Industry and Trade can be viewed as one of those excessive reactions to the boom. The best way to put it in context is as if the Czech government would forbid the registration of cars consuming more than 1 litre per 100 km as of 1 May. It is complete nonsense and from our understanding there is a lot of opposition to this measure. According to our view and that of several lawyers this measure would be against EU law and in violation of several treaties, exposing the Czech Republic to an endless row of law suits and arbitrations, not to mention a major backlash from the EU.

I hope that this is sufficient as our first reply.

Best regards,

Źródło: "Trzyde" - http://www.parkiet.com/forum/viewtopic.php?t=132856&postdays=0&postorder=asc&highlight=photon&start=1605