CEZ was officially merged with eight state-owned domestic power distributors yesterday, as part of the government’s energy-sector restructuring plan. CEZ must sell one majority and the three minority stakes due to an antitrust ruling.
CEZ will pay in total CZK 32 bil. for the eight distributors, plus approx. CZK 4 bil. as capital-gain tax on the sale of a 66% stake in CEPS, the transmission-grid operator, to the state.
CEZ will pay approx. CZK 5.5 bil. in cash in 2003, followed by equal annual payments through 2006. This payment schedule could yet be modified, though, as the Finance Ministry reportedly wants the cash payments (which including taxes totals CZK 21 bil.) to be received by 2004.
Separately, the new industry minister, M. Urban, said in an interview with the Czech-based Pravo newspaper yesterday that he thinks CEZ privatization will not take place within the government’s current mandate (a general election is due in 2006). This is negative compared with previous comments from government officials, which had indicated that CEZ privatization could take place in 2004-5.
Jiří Soustružník