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March 22, 2023

CEZ interested in Electrica branches

Czech group CEZ is interested to participate in the privatisation of power distribution branches still property of Electrica, Jan Veskrna, Chairman of CEZ Romania Board said yesterday. ‘We have discussed it with the shareholder in the Czech Republic and, if privatisations of the remaining electricity distributions open, we will be interested to participate. (…) I will catch the first flight to Prague if a decision is made on privatisation’, he said. He added that CEZ representatives had started talks with the authorities regarding that aspect, but the answer received was rather general’, Mediafax notes.  Asked which of the resident distribution subsidiaries would interest CEZ  (Transilvania Sud, Transilvania Nord and Muntenia Nord), Veskrna said it depended on Romania’s willingness to privatise but also on the chosen sale modality – en bloc or per stand-alone unit. Veskrna also said CEZ would probably not make an offer for all three, but the most logical choice of a single branch would be Muntenia Nord.  The Chairman of CEZ Romania Board also said CFR had paid up its over RON 250 M debt towards CEZ for the electricity supplied, but the Czech group had to give up on penalties accumulated over a period of five years, amounting to about RON 120 M’. After five years, the issue of the debt has been brought to zero and the risks for CEZ Vanzare have disappeared. Hey were about to be closed down and lose their licence. (…) The good part – the sweet one – is that we have retrieved the money. The bitter part is that we had to renounce all penalties’, Jan Veskrna said.The Government decided by executive decree, in June, to give a loan to CFR to pay up its debts towards electricity suppliers, a measure agreed upon with the International Monetary Fund.

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