PRAGUE (Reuters) – Czech power utility CEZ will appeal against a court injunction preventing it from signing an $18 billion deal with Korea’s KHNP to build two new nuclear reactors, CEZ’s Chief Executive Daniel Benes said on Wednesday.
Benes told reporters CEZ respected Tuesday’s court ruling but was continuing with preparations of the project despite the legal challenge by losing bidder EDF of France, and would seek damages caused by delays.
“We have strong conviction that we did not violate anything and that the tender will go into a successful conclusion in the form of signing the contract, I have no doubt about that,” Benes said.
Benes said he was convinced CEZ had proceeded correctly and the Highest Administrative Court would scrap the lower-court injunction.
CEZ officials said the project could start running into delays if the court battle takes long, potentially threatening the 2036 completion date for the first of the two planned 1,063 megawatt units.
EDF has argued against the tender process, which used a national security exemption for standard tender procedures. CEZ and the state, which holds a majority in CEZ, have insisted KHNP’s offer was superior to that of EDF.
CEZ said on Wednesday the exact price for the two units would be 407 billion crowns ($18.57 billion), in “overnight” costs, meaning without the cost of financing and increases based on contracted inflation clauses, and subject to exchange rate fluctuations.
This would mean an electricity price from the new units, including CEZ’s profit margins, of below 90 euros per megawatt hour in 2025 prices, CEZ said.
That price will be guaranteed by the Czech state as part of public aid for the plant, along with loans for its construction.
($1 = 21.9180 Czech crowns)
(Reporting by Jan Lopatka; Editing by Alex Richardson)
