PRAGUE :The European Commission has asked the Czech Republic to postpone signing a contract with South Korea’s KHNP to build new nuclear power blocks, Czech news agency CTK reported on Monday, citing a letter to the country’s industry ministry.
The postponement would allow time for the European Union executive to investigate whether KHNP was given foreign subsidies that may distort the EU internal market, CTK said.
A Czech regional court has already temporarily blocked electricity firm CEZ, in which the Czech state has a majority, from signing a contract worth at least $18 billion with KHNP until the court handles a complaint from the losing bidder, France’s EDF.
The French group turned to the court this month after the Czech anti-monopoly office rejected its bid. EDF has also complained to the Commission since losing the tender last year.
The Czech government had wanted to sign contracts with KHNP this month following clearance from the anti-monopoly office. The state and CEZ have insisted KHNP’s offer was superior to that of EDF.
CEZ and the Industry Ministry did not immediately reply to requests for comment.
CTK cited CEZ chief executive Daniel Benes as saying the Commission’s letter was from May 2 and that the French group was interested in preventing the plant from being built.
