The Czech power provider CEZ is celebrating its tenth anniversary today. The company was established on 6 May 1992 by the Czech State Property Fund. It was one of the new entities emerging from the assets of Ceské energetické zavody (Czech Power Company). Its major focus became the production of electricity, which was then sold primarily to regional distribution companies. The establishment of the CEZ joint stock company provided an enormous incentive and new motivation for many of his employees. I assume that all of them felt they were at the beginning of something new, which was worth participating in. In today's perspective we may perceive the achievements of the company and its position within the European context as an indisputable accomplishment. We must take into consideration the vast number of companies that did not succeed under similar circumstances.At the beginning of our existence the goal of the production was to operate the sources at the planned output level, because the entire production output was always successfully sold. By now we have become a company which responds to completely different stimuli and our production output is tailored precisely according to the market demand, because the market has been fully opened for electricity producers since the beginning of this year. We have become a company capable of sustaining our strong position on the market, even though we have to comply with less favourable conditions than our competitors, said Mr Jaroslav Mil, the CEZ Chief Executive and the Chairman of the Board of Directors, on the occasion of the 1ith anniversary of the company.The milestone of the past ten years:CEZ has become one of the pillars of the Czech economy. Over the past 10 years, it has been selling its electricity to domestic distribution companies for the same stable price (in 1992 the price was 1.13 CZK/KWh, now, after ten years, it is on the same level, if the CEPS services are also included in the calculation).
By 1998, CEZ implemented the fastest programme of ecologising (cleaning) coal-fired power plants in the whole Europe. A total of 6 427 MW of installed capacity was equipped with desulphurising machinery or fluid boilers, while 2 020 MW of capacity installed in outdated sources was outaged (and has been replaced by Temelin). These measures resulted in reducing the output of sulphur dioxide emissions, produced by CEZ sources, by 91 %, the output of nitrogen oxides was reduced by half and the emissions of solid pollutants were reduced by 96 %, all in comparison with the year 1992. The emissions of carbon monoxide were reduced by 77 %.
The Czech transmission network, still owned by CEZ, was interconnected with the western European system UCTE in 1997, and is now working within this network. The Czech power industry thus became the first Czech industrial branch to enter the EU. Since this integration, the Czech network has been supplying electricity whose quality is identical with countries west of our border.
CEZ was also the first East European enterprise to issue its obligations into foreign markets (European Eurobonds and American Yankeebonds). The exceptional position of the company is underscored by the BBB+ rating it received from Standard and Poor´s agency and by the Baa 1 rating it got from Moody´s agency. This credit helped the company to cover the large investment of the demanding programme of CEZ (from the establishment of the company until the end of 2001, CEZ invested a total of 176,8 billion CZK into construction).
Dukovany Nuclear Power plant has made considerable improvements over the past years and is now ranked as one of the top 20% of the best operated nuclear power plants in the world.
CEZ has considerably downsized its staff. Right after the establishment it had l 16 407 employees. This has been scaled down to 7 462, which translates into a drop by almost 9 000 (i.e. by more 55 per cent).
CEZ has not yet been completely privatised. CEZ and the entire Czech power industry are now waiting for a reform, which consist in interlinking CEZ with commercial channels, i.e. with distribution companies. This reform is stipulated by governmental resolution and is aimed at adapting Czech power industry to the standard structure found in western Europe, where all significant companies own not only production and distribution facilities, but in most cases also the fuel suppliers and transmission network. This ownership structure is typical e.g. for German power industry. In a short time this structure will also be introduced in Austria, which is currently undergoing the process of merging the existing distribution companies, so that one of them will control three quarters of the market, and negotiations are held about potential further steps that would lead to interconnection with the major Austrian producer. This is similar to the Czech scenario.I am convinced that a strategic partner would help us prosper and contribute to the whole-European market. Without such a partner, our company will obviously not be strong enough and can only be a major player on the Central European market. This is a fundamental difference. In the long term we will have to try to extend our cooperation with coal mining companies. This is the only way of optimising production in the area of standard power industry. We will consequently focus primarily on the Central European market, where we already have a stable position, with the future outlook of our potential integration into foreign business entities operating in the entire Europe, or of our partnership with these companies. However, our ultimate priority is not to own the transmission network, but the need to return to the area of distribution and commerce and regain our former position there. There is no reason why a foreign producer should be prioritised in terms of the share on the Czech market, added Jaroslav Mil and concluded by outlining the future of CEZ: I can imagine CEZ after another decade as an integrated and efficient team of self-confident people who share the same values. I understand this clearly structured business entity as CEZ interlinked with suppliers of raw materials, with commercial channels, i.e. the sales of electricity, even without the ownership of the transmission network. I can even imagine the CEZ of the future branching outside the framework of electric power industry. CEZ produces more than 60 % of electricity generated in the Czech Republic. It is currently operating 1 nuclear power plant, 10 coal-fired power plants and 13 hydro-power plants, 2 power and heating plants, 3 wind-power plants and one photo-voltaic power plant. The Temelin Nuclear Power Plant is in the process of being put into operation.CEZ Power Company is one of the largest enterprises in the Czech Republic in terms of basic assets (59 209 mil. CZK), turnover and net profit. In the global scale, its 7 462 employees and 10 146 MW of installed capacity make it a medium-sized power company. However, if we take into consideration all related supplier companies, it provides employment for more than 100 000 people in the whole Czech Republic.Ladislav Kriz, CEZ Press Officer