The government intends to cancel the coal-mining limits and increase nuclear-energy power plants capacity

Some details on several scenarios of the state energy policy were released yesterday. Worth mentioning is the proposed cancellation of the coal-mining limits (which would result in the longer availability of the domestic coal supply and possibly its lower price in the medium term compared to other scenarios), and the proposed expansion of the nuclear-energy power plants. The latter contrasts with CEZ policy, which has claimed it does not plan to expand its nuclear asset base, planning to rebuild a large part of its lignite power plants in 2010-2020 period. Thus, the proposal may make investors feel uneasy about the prospect of CEZ privatization, since the state could hardly force private entities into concrete investment plans.In privatization-related comments from the Industry Minister V. Urban for a Czech daily, he reiterated CEZ will not be privatized before 2006, but the Cabinet plans to float a 15-16% equity stake on the capital market (the state holds in total 67% of CEZ).

Jiří Soustružník