Prague – Stéphane Séjourné, the Vice-President of the European Commission from France, has formally requested the Czech Republic to delay signing the contract for the construction of two new nuclear reactors at the Dukovany power plant. According to Commission spokesperson Thomas Regnier, the EU is examining whether KHNP, the Korean firm that won the tender, has received foreign subsidies that might disrupt the internal market of the European Union. The final agreement for the Dukovany project was halted last week following a preliminary injunction from the Regional Court in Brno, initiated by a lawsuit from the French company EDF, which lost out in the nuclear tender. In response, Prime Minister Petr Fiala (ODS) emphasized that Séjourné’s letter does not reflect the official stance of the EC.
Fiala stated, “As far as I know, this is a letter from the European Commissioner, not a position of the European Commission, and it holds no binding authority over us. The court’s preliminary injunction, which requires us to delay signing the contract until the lawsuit is resolved, is of far greater significance to us.” The letter was sent at the beginning of May by Séjourné, who is responsible for Prosperity and Industrial Strategy, to Czech Minister of Industry Lukáš Vlček (STAN). Vlček confirmed today that the ministry has yet to receive any formal correspondence from the EC regarding the contract delay, only a courtesy letter from the Commissioner.
Czech European Commissioner Jozef Síkela (STAN) has opted not to publicly discuss Séjourné’s letter until he has spoken directly with the French Commissioner. He made this known during a press conference at Prague Castle titled “Europe as a Task” and intends to meet with Séjourné on Tuesday.
The EU has already launched a preliminary review to determine if KHNP’s possible foreign financial contributions qualify as foreign subsidies, and if such subsidies distort the internal market. This review pertains to compliance with the 2022 regulation on foreign subsidies that impact the internal market. The EU stressed that it “does not prejudge the final decision,” but it is preparing to potentially initiate a more in-depth investigation. The EC spokesperson clarified today, “We are not yet at the stage of an extensive investigation, and I would not want to assume whether we are preparing to do so or not.” The letter, which CTK has seen, refers to a postponement and bears the title: “Request for Immediate Action to Suspend the Signing of the Contract for New Nuclear Reactors in Dukovany.”
KHNP emerged as the winner of last year’s domestic nuclear tender, with the government favoring its proposal over those from EDF and Westinghouse. The first reactor at Dukovany is slated for completion in 2036. The construction of these new nuclear reactors in the Czech Republic is anticipated to be the country’s largest domestic contract to date, with projected costs for the two reactors at 407 billion crowns. Daniel Beneš, the head of Czech energy company ČEZ, remarked today that the French side seems more interested in obstructing the construction of the Dukovany plant rather than winning the dispute. Minister of the Environment Petr Hladík (KDU-ČSL) believes the timing of the EC’s letter is not coincidental and notes its issuance by the French Vice-President.
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