United Energy owned by J&T announced intention to build 160 MW coal power plant in Komorany, Northern Bohemia for CZK 4-5bn by 2009/2010. Supply of coal from MUS is questionable as United Energy is in dispute with Czech Coal, therefore there is possibility to use also hard coal
As a fuel.
Our view: Installed capacity is rather small in comparison to standard CEZ's units of 660 MW and the company doesn't have long term contract for fuel supplies arranged so far. Nonetheless we see the news as slightly negative for CEZ in longer term.