CEZ's nationalisation would be costly nonsense - Fiscal Council head

Prague, Nov 3 (CTK) - The nationalisation of semi-state energy group CEZ, which is included in the draft policy statement of the emerging government of the ANO, SPD, and Motorists, is an expensive and unnecessary nonsense. Czech Fiscal Council head Mojmir Hampl said in a discussion on the Czech Television (CT) on Sunday.

Without further steps, it would not lead to changes in the prices of energy, according to Hampl.

ANO deputy chairman Karel Havlicek wrote on the X network the planned nationalisation of CEZ would be justified by the growing number of regulations in the energy sector, which, according to him, require a change in the ownership structures of power plants.

"We will take steps to gain 100 percent control over production in the CEZ group. The purchase of shares will not be financed from the state budget, but through CEZ's own buyback," the coalition said in the draft policy statement available to CTK.

Havlicek said earlier this step would take about a year to a year and a half and cost roughly Kc250bn. The current cabinet has long criticised this plan.

Hampl pointed out today that the state receives dividends from CEZ amounting to up to Kc20bn annually. If CEZ were nationalised, the state would lose this money.

According to Havlicek, the process of nationalising CEZ's production has already begun. "Investments in nuclear power are being made by Elektrarna Dukovany II, which is already controlled by the state. And every other major investment (such as in the Temelin nuclear power plant) must be made in the same way - with the state gaining full control over new projects. Not to mention that the government sets the purchase price and guarantees a return on investment," Havlicek wrote on X.

"Large-scale energy production is shifting from a market-based to a regulated business across Europe. It is therefore logical that the ownership structures of power plants must also adapt to this," Havlicek added.

"The motivation is to control CEZ completely," said former finance minister Miroslav Kalousek. "There is often a misunderstanding about what CEZ is. CEZ is a private company listed on the stock exchange, with the state exercising its ownership rights under private law and, in addition, having very strong regulatory mechanisms under public law," he added.

Analysts approached by CTK are against the nationalisation of CEZ. According to Capitalinked.com analyst Radim Dohnal, such move would leave the company heavily in debt, and the resulting reduction in profitability would make it impossible to finance the construction of new nuclear reactors.

"Corruption and nepotism would flourish. It would complicate the environment for other electricity producers and sellers. It would be the beginning of the end of capitalism in the Czech Republic," Dohnal told CTK on Friday.

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