CEZ set to place Czech nuclear assets in new unit

By bne IntelliNews May 17, 2017

Czech state-controlled energy group CEZ is set to place all nuclear-related activities into a new division, local media reported on May 17.

The move raises speculation that the company is preparing to hand its nuclear operations to the state, in a bid to find a route out of long-running stand-off over the construction of up to four new nuclear units in the coming decades. CEZ management suggested in February that a division of the company along the lines of German utilities RWE and E.ON was being discussed.

The nuclear expansion is at the centre of the Czech Republic’s long-term energy strategy, but the state insists it will not offer financial support. That presents a challenge to make the projects economically viable, and CEZ’s private shareholders oppose going forwards.

“Given market conditions, [the construction of new nuclear units] should be a political decision and be processed by a company 100% owned by the state,” write analysts at J&T Bank.

However, a spin-off would also be unpopular amongst shareholders. The country’s nuclear power plants are the key asset for CEZ, generating almost half of the company’s total power production.

However, the company reiterated that CEO Daniel Benes recently said the idea to hand the nuclear assets to the state is not under consideration. However, that doesn’t convince all. “Some kind of split on a two to four year horizon is definitely not ruled out in our view,” insist analysts at KBC.

Related Articles

Hungarian PM's "proxy" moves into the nuclear industry as Paks tenders approach

Firms controlled by Hungarian oligarch Lorinc Meszaros have purchased a 51% stake in the Hungarian subsidiary of Czech nuclear ... more

TAP suspends work on Albania pipeline after uncovering ancient settlement

Trans Adriatic Pipeline (TAP) AG company, which is in charge of the construction of the TAP gas project, has temporarily suspended works on the pipeline near the Turan village in Korca in the ... more

Russian government united in demanding full dividends from Rosneft’s holding company

The Russian Ministries of Finance, Economic Development and Energy have drafted a bill requiring Rosneftegas to pass 100% of the dividend it receives from its stakes in state ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss