Research (Česká spořitelna)
Czech markets  |  February 11, 2013 09:29:21

ČEZ wants government guarantees for electricity from Temelín

Board member Paul ČEZ Cyrani hinted that the company does not sign the contract for the construction of other blocks in the NPP, unless it receives from the state guarantee on the cost of electricity from this source. Negotiations on guarantees provided by Cyraniho just begun (FleetSheet, MfD).

This report is consistent with our view that CEZ would probably Temelin project completion due to current low electricity prices on the stock exchange halted in the absence of state guarantees. Overall project completion of Temelin not seen as a threat to long-term financial health of CEZ. The company is likely to either receive state guarantees or postpone the project.

Petr Bartek

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