Press releases pg. 11

ČEZ has selected the highest offer it had received in its process to divest some of its coal-fired power plants. Today, ČEZ signed a contract to sell the Chvaletice power plant to Litvínovská uhelná a. s. The selling price is CZK 4.12 billion. Moreover, ČEZ will annually obtain 90% of the market value of CO2 emission allowances allocated for free to the Chvaletice power plant, which will then be used to further upgrade its power plants. This concerns 5.3 million tons of allowances in a total value of some CZK 450 million in their current prices. The signed contract does not cover any coal supply arrangements with ČEZ. The European Commission now just needs to confirm that the buyer, Litvínovská uhelná a.s., is sufficiently qualified.

ČEZ and Vršanská uhelná (Czech Coal group), a mining corporation, have appended their signatures to a contract to finally secure the supply of coal to the Počerady power plant for a term of up to nearly 50 years. In view of the long-term nature of the contract and the fact that the contract significantly stabilizes the situation in the entire coal market but also in the electricity market, it can be considered as an end to one of the most complex and difficult negotiations in the Czech energy sector.

The Board of Directors and the Supervisory Board of ČEZ have today approved an amended version of the Settlement Agreement with the European Commission, which represents a major step towards putting an end to the investigation conducted by the European Commission against ČEZ since 2009. Already in June 2012, ČEZ offered the EC to conclude the investigation in this manner; that is by committing to sell one of the following power plants: Počerady, Chvaletice, Dětmarovice, or Tisová together with Mělník 3. All of these are power plants for which ČEZ does not plan any major upgrades but rather foresees their gradual shut down as the facilities reach the end of their technical service life. The amended Agreement no longer mentions the Dětmarovice power plant. This Agreement will take force once it has been approved by the European Commission.

ČEZ has invited bidders to participate in Round 2 of the selection procedure to sell its Dětmarovice black-coal power plant. The deadline for submitting offers is November 22.