The Energy Situation in the Czech Republic

Mr Jan Poucek, Director general of Energy in the Ministry of Industry and Trade of the Czech Republic and Mr Jaroslav Mil, M.B.A., Chief Executive Officer and Chairman of the Board of Directors of CEZ will describe the Energy Policy in the Czech Republic in the framework of the preparation to accession.
Miss Dana Drábová, President of the State Office for Nuclear Safety, has kindly accepted the invitation of the Foundation and is willing to take part to the discussion.

Other representatives of CEZ, present that evening, will intervene during the debate as appropriate:
• Mr Frantisek Hezoucky, Member of the Board of Directors and Executive Director of the Temelin NPP Construction Division;
• Mr Josef Sedlak, Member of the Board of Directors and Finance and Administration Plant Director of Dukovany NPP ;
• and Mr Aleš John Member of the Board of Directors and Technical Plant Director of Dukovany NPP.

The Czech Republic is continuing to align its national legislation on the “acquis communautaire”. Prices in this sector have been further increased. In January 1998, an Energy Regulatory Administration was established.

The key elements of the energy acquis communautaire are Treaty provisions and secondary legislation, particularly concerning state aids, the internal energy market (including directives on electricity, price transparency, gas and electricity transit, hydrocarbons licensing, emergency response and, in particular, security stock obligations), nuclear energy, energy efficiency and respect for the environment. (more on Czeh Republic’s community acquis)

Jan Poucek, the Director General for Energy at the Ministry for Trade and Industry first sketched the broad outlines of Czech energy policy, which was based on the same principles as the European Union’s : security of supply, competitiveness and protection of the environment with a view to sustainable development.

Two major acts should come into force on 01.01.2001. The first was intended to regulate the electricity, heat and gas sectors by setting out the respective roles of the undertakings and the State and provided for the gradual opening up of the markets as of 2002.

The second, which was based on the energy efficiency protocol of the Energy Charter Treaty, was aimed at bringing the country in line with the Kyoto undertakings.

Finally, Jaroslav Mil, the Chairman of the Board and Managing Director of the CČEZ electricity company, explained how the company was adapting to its future economic context. CEZ currently had a capacity of 10 150 MWe which would increase to over 12 000 Mwe in 2002, when there would be 6000 employees, compared with 17 000 when it was set up in 1992. CEZ had carried out the largest environmental improvement programme in Europe over the same period by investing in desulpherisation plants and fitting boilers with fluidised beds. The level of cleanliness in CEZ electricity power stations was now comparable with those of the European Union.

The first CEZ nuclear plant, Dukovany, was very reliable and met 20 % of the domestic demand for electricity. As a result of a harmonisation programme drawn up in conjunction with the IAEA in Vienna and other nuclear plant operators, security and efficiency at Dukovany would be further enhanced.

The second nuclear plant, Temelin, was currently being started up and commercial operations should begin in April 2001. According to the latest opinion polls, more than 70% of the Czech people were in favour of Temelin.

In September 2000, the government approved the privatisation of the electricity sector. The question of an alliance with a strategic partner was subject to the long-term advantage any such alliance might bring within the context of a liberalised European market.

The best proof of the success of past efforts would be the level of interest on the part of potential investors when the sector was privatised.

The debate enabled Jaroslav Mil to point out that the popular support for nuclear power came from Dukovany’s good operating record – over 15 years – and its contribution to improving the environment and the economy. Much effort had been put into providing the schools with information on energy. The example of the very costly programme for cleaning up coal-fired power stations had also played its part.

Austria’s opposition to starting up operations at Temelin was a difficult political problem in spite of the information campaigns launched almost 10 years ago. Members of the Czech Parliament were quite prepared to speak about the Temelin plant and the blockade imposed by the Austrians before the European Parliament.

President Linkohr concluded by emphasising how cultures and attitudes could influence events; he said it was not a question of information but one of belief; it was also a question of credibility and thus of transparency; he said it would be necessary to dispense with the rhetoric.