The Czech Anti-Monopoly Office said that CEZ privatization as proposed (CEZ to be sold together with transmission assets and six regional distributors) would substantially reduce competition in the domestic power sector. Although the AMO cannot directly influence the privatization process, the successful strategic investor must get the office’s approval of a CEZ, transmission-assets, and distribution-assets merger after the investor gains control in the privatized companies. The AMO’s statement suggest that such approval is far from a sure thing; should the AMO take a hard stance, the completion of power-sector privatization would become very complicated. Negative.
Representatives of the Austrian ruling parties proposed a resolution related to the Czech Republic’s Temelin nuclear power plant. While the resolution does not call for a veto of the Czech Republic’s accession to the EU, it contains certain conditions that should be fulfilled by the Czech side (i.e., resolving safety issues identified by Austrian experts). The final version of the resolution will be discussed by the Austrian parliament next week. Should it be approved (which is likely), the Austrians will thus be officially putting forward another set of conditions related to Temelin and EU accession which would not be good news (though CEZ stock has emerged as rather resistant to the such news as Temelin’s shutdown is extremely unlikely).
(Jiri Soustruznik)