The European Commission requested the Czech Republic to refrain from signing an agreement to grow Dukovana atomic power plant. The reason is the planned investigation into the Korean company KHNP, which won the tender. Brussels wants to see if the offer is in breach of EU interior marketplace rules. However, Czech officials propose that the decision may be linked to the failure of the French company EDF.
KE initiates an investigation into Korean KHNP
In a letter addressed to the Czech Minister for manufacture and Trade, Mr Lukáš Vlček, Vice-President of the EC Stéphane Séjourné reported that the Commission is preparing for a detailed investigation. It wants to find whether KHNP received unfair financial support that could distort competition.
‘On the basis of the information provided, as well as another information disclosed by the Commission services in the context of the preliminary review, there are inactive compelling indications that the organization (KHNP) has received abroad subsidies which may distort the interior market’ – reads the May 2 document.
The EC had already requested additional clarifications from the Czech company CEZ, Dukovany and KHNP, but found the responses insufficient. Although stressing that she has not yet reached final conclusions, she calls on the Czech Republic to abstain from signing the contract until the investigation is concluded.
The French EDF lost the tender – is it now seeking revenge?
KHNP won a bid worth billions of euros, defeating the French company Electricite de France (EDF). However, this initiated legal proceedings which led to the task being stopped.
Czech politicians do not hide suspicion that the EC is acting under the influence of French interests. Environment Minister Petr Hladík suggested that the decision of Brussels may be inactive, although he did not make direct allegations. The head of Czech diplomacy Jan Lipavský announced that the government would examine the position of the EC.
“French will do anything to block construction”
Daniel Beneš, CEO of CEZ, was more decisive in his assessments:
“The French will do anything to prevent the construction of specified a power plant. They do not want to win, but to prevent the construction of the power plant here, and this is simply a dramatic message for the Czech Republic”.
Beneš called the EC procedure "questionable" and suggested that the Czech Republic should reject the Commission's requests.
A spokesperson for the Czech Ministry of abroad Affairs confirmed that the case was the subject of talks with France, but refused detailed comments, citing the desire to keep good bilateral relations.
Séjourné assured that the EC's nonsubjective was not to block the project, but to guarantee transparency:
"The aim is to guarantee legal certainty and that the principles of our interior marketplace are respected".
What's next on the Dukovan expansion?
The Czech government faces a hard choice – whether to wait for the decision of the EC, risking hold or acting against EU recommendations. The case can affect not only the future of Czech energy, but besides Prague's relations with Brussels and Paris.
Read more:
KE blocks the anticipation of expanding the Czech atomic power plant Dukovana
