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Czech Republic: Sale of power plant to appease EU may be ‘fatal’ to electricity market

By  |  March 21, 2013
Czech Republic: Sale of power plant to appease EU may be ‘fatal’ to electricity market

Energy producer CEZ has announced at a press conference that the company plans to sell its thermal power plant Chvaletice. In a move that aims to finally settle with the European Commission, CEZ plans to sell the plant to Litvinovska uhelna, a mining company. The mining company reportedly out-bid EPH; despite its surprise that it was out-bid, EPH reportedly included various conditions with their request to buy. The Commission has been waiting for a settlement agreement to be complete since 2009 when the authority brought proceedings against CEZ for alleged abused of its dominant position in the electricity market. The Commission has yet to confirm that the sale of the plant will sufficiently settle the authority’s concerns. The Czech Republic’s Association of District Heating has vocalized opposition to the deal, claiming that the sale means “the coal market in the Czech Republic virtually ceased to exist” as of the announcement of the deal, and that, if approved, it would have “fatal impacts” on the nation’s electricity competition.

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    Full Content: Prague Daily Monitor

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