Energy sector needs decision on financing of new nuclear units

Construction of new nuclear units should be financed by the state, not by CEZ power company, experts from the Standing Committee on Nuclear Energy lean to this opinion, government commissioner for nuclear energy Jan Stuller said at today's briefing after the committee's meeting.

Independent teams of expert opponents are to be set up to evaluate the financing options, he added.

Industry and Trade Minister Tomas Huner noted that the committee should submit its evaluation after another meeting which is to take place on May 15. The government should discuss the document in June.

Prime Minister Andrej Babis in the position of finance minister in the previous government supported construction of a new nuclear unit purely from CEZ's resources. One of his arguments was that the company has enough money.

However, this could be disadvantageous for minority shareholders. This is why CEZ's potential split or transformation started to be discussed.

Stuller and Huner said today that the committee was dealing with potential construction in both domestic nuclear power plants, in Dukovany as well as in Temelin.

Stuller added that both options will be on the table as long as possible. "With respect to the age of the equipment, Dukovany needs new units more," Huner added.

The Czech energy sector clearly needs decision on financing of new nuclear units, said the Confederation of Industry. It supports their construction based on real conditions and need for a stable energy source to replace coal-fired power plants which will be gradually put out of operation.

"We cannot wait any longer and breach the stability of power supplies in the future," the confederation"s president Jaroslav Hanak said today.

Babis earlier said that a team of experts should discuss CEZ's potential split due to the construction of new nuclear units. Its members will be proposed by the government, the Finance Ministry and Industry and Trade Ministry.

Huner said today that he was in contact with Babis due to the issue but the team has not been formed yet. It should be set up when it becomes clear what way of financing is chosen.

Environmental organisations have been protesting against potential construction of a new nuclear unit for a long time. The Friends of the Earth (Duha) and Calla association said in a press release today that another bet on nuclear energy is an excessive economic risk.

The previous government of Bohuslav Sobotka in 2014 did not provide state guarantees for Temelin's completion. CEZ then cancelled the tender for a new unit in the power plant.

According to the original plans, construction of the new units was to be completed in 2025 and costs moved between Kc200bn and Kc300bn.

CEZ, the largest Czech energy company, is about 70 percent owned by the state via the Finance Ministry.

CEZ raised net profit by 30 percent to Kc19bn last year, while its sales fell by 1 percent to Kc201.9bn.

Source: CTK