EDF says it never wanted to disrupt Czech nuclear program

Prague, May 12 (CTK) - The French company EDF, which failed in the tender for building new nuclear units at the power plant Dukovany and on whose initiative a Czech court blocked the signing of the final contracts with the Korean firm KHNP, said today it has never acted with the intention of disrupting the Czech nuclear program.

In the statement available to CTK, EDF said it is participating in the ongoing proceedings before the European Commission under the Foreign Subsidies Regulation, which have intensified in recent weeks, an its participation is supported by the French government. EDF stated that it has never acted with the intention of disrupting the Czech nuclear program. The company said it is only properly exercising its legal right to raise legitimate concerns about the legality of a competitor's bid under EU law.

French European Commissioner Stephane Sejourne has asked Czechia to postpone the signing of the contracts on the construction of new nuclear units.

However, Czech Prime Minister Petr Fiala and Industry and Trade Minister Lukas Vlcek pointed out today that this letter is not an official stance of the European Commission.

European Commission spokesman Thomas Regnier confirmed that the EC had sent a letter to the Czech government expressing concerns about the foreign subsidy regulation concerning the South Korean company KHNP, which might distort the internal market.

Daniel Benes, the head of semi-state energy group CEZ, the operator of the Dukovany nuclear power plant, said in reaction today that the letter is dated May 2. Minister Vlcek said he would answer the letter today.

"But I am convinced that the Czech Republic should reject what is in the letter," Benes said. "It is hard to believe that there is an investigation going on when no one asks you any questions. The French will do everything to prevent such a plant from being built. It is not about winning, but about not building a power plant here, and that is dramatic news for the Czech Republic," he said.

EDF is "aware of the importance of the success of the Czech nuclear project and supports its implementation with at least 60 percent participation of local industry, in full transparency and in compliance with Czech and European legislation," the company said, reiterating its readiness to negotiate with CEZ and the Czech authorities as necessary.

KHNP succeeded in the Czech nuclear tender last year, with the government favouring its bid over that of EDF and Westinghouse. The first unit at Dukovany should be ready in 2036. The construction of new nuclear units in the Czech Republic is expected to be the largest domestic contract in history. The cost of the currently preferred construction of two reactors at Dukovany is 407 billion crowns at current prices.

($1 = 22.162 crowns)

kva/dr/rtj