According to HN daily, CEZ’s project to build power plant in Pocerady with mining company Mostecka uhelna (MUS) for CZK 30bn is starting to be uncertain. At the end of June, CEZ exclusivity option for negotiation with MUS expires and MUS can negotiate with CEZ’s competitors (E.ON, Enel). Neither CEZ nor MUS has released official statement regarding the Pocerady project. MUS sees the opportunity to cooperate with CEZ where state has the majority stake and that could help lobbing for breaking the mining limits where there is 280m tons of coal.
We see the news as negative but it is too soon to make a conclusion since there are still chances that MUS and CEZ will cooperate on the Pocerady project as CEZ needs MUS for its coal and MUS needs CEZ for its power to help to break the mining limits. We will wait for further development in the issue.