Electricite de France said yesterday that it will submit its bid for CEZ (and for the assets privatized with CEZ) on December 3. This appears to be the deadline for the shortlisted bidders (EdF, NRG/International Power, Enel/Iberdrola). According to the official privatization schedule, the best bid should be recommended to the Cabinet by December 14. Neutral.
The finance minister, Jiri Rusnok, said he has not received an official objection from the Czech Anti-Monopoly Office concerning the fact that power-generation, transmission, and distribution assets will be sold to a single investor in the tender sale. The AMO has expressed its opposition to the plan to add the national transmission grid to the assets to be sold, on competitive grounds, but it cannot undertake any formal action until the power-sector assets are actually sold. In effect, no major change to the situation, i.e. a potential threat to the privatization outcome from the AMO persists.
The Czech foreign minister, Jan Kavan, yesterday said that Loyola de Palacio, the European Energy Commissioner, agreed with his plan on how to conclude the Czech-Austrian dispute over CEZ’s Temelin nuclear power plant, which represents the biggest obstacle to the Czech Republic’s closing of the energy chapter of EU-accession negotiations. Kavan wants to reach a formal conclusion to the Czech-Austrian Melk agreement toward Temelin’s safety assessment (coordinated by the European Commission) by early December. He said that so far he has been unable to obtain a guarantee that Austria would not block the conclusion of the energy chapter because of Temelin. The European Commission’s understanding for the Czech position on Temelin is positive, but is unlikely to have an impact on the stock until it translates into a settlement of the Temelin dispute with Austria. Also, the Austrian environment minister, Wilhelm Molterer, said yesterday that the Czech Republic has the right to use nuclear power, but that he will stand for Austrian interests in the dispute.
Finally, the Czech Cabinet’s regular weekly meeting today will feature a regular report on progress in Temelin’s nuclear plant construction. Not material for the stock.
(Ondrej Datka)