Czech Coal, EPH submit bids for ČEZ power plants

Prague, Aug 31 (CTK) - Mining company Czech Coal and Energeticky a prumyslovy holding (EPH) Friday filed binding binds for the purchase of coal-fired power plants Pocerady and Chvaletice from power company CEZ, spokespersons of both companies informed CTK without disclosing the price.

CEZ has confirmed to CTK that it received offers from two companies. The envelopes will be opened on Monday.

Czech Coal is interested in the power plants because it could use its coal in them. The company has been in several disputes with CEZ over coal prices for the two plants - Pocerady in northern Bohemia and Chvaletice in eastern Bohemia.

Czech Coal has filed the bids through its company Vrsanska uhelna.

"By this acquisition, we would create a new player on the electricity market that would not depend on seller and other electricity producers. Moreover, we have a sufficient amount of suitable type of fuel for optimum operations of both power plants," said Czech Coal board vice-chairman Lubos Pavlas.

The power plants' purchase and modernisation would be one of the biggest investments in the Czech Republic's history. They would also help create many jobs, Czech Coal said.

Czech Coal would run the power plants for the whole lifespan of its mine Vrsany, that means beyond the horizon of the year 2055.

CEZ has decided to offer some of its coal-fired power plants for sale because it wants to operate only a limited number of modernised coal-fired units in the future. At the same time, CEZ thus wants to resolve the EC's investigations concerning suspicion of limiting competition.

Apart from the Chvaletice and Pocerady power plants, CEZ has offered for sale also power plants Tisova (western Bohemia), Melnik 3 (central Bohemia) and Detmarovice (northern Moravia).