1. 10. 2007

CEZ has today broaden lawsuit against Mostecka uhelna enforcing fulfilment of concluded long-term coal supply contract

According to the recommendation of legal advisors, CEZ has today taken another legal step against Mostecka uhelna from the Czech Coal group enforcing fulfilment of long-term coal supply contracts for a modern power plant in the area of Pocerady concluded in 2005.

By reason that the Czech Coal group refused to meet its engagement under the contract for cooperation from July 1, 2005, CEZ applied to court to confirm the long-term contract of purchase on June 29, 2007. Today, CEZ has broaden the lawsuit to include a claim on compensatory damages that might arise in case a long-term contract of purchase is not concluded despite the lawsuit that has been filed. The damage figure claimed in this manner has been put at the level of 22bn CZK by Deloitte.

At the same time, CEZ has filed a second lawsuit against MUS through which it is claiming damages that have incurred up to now owing to the Czech Coal group´s refusal to meet its engagement under the contract for cooperation from July 1, 2005. The amount represents tens of millions CZK primarily connected to costs of legal and advisory services.

CEZ further prefers to adhere to the articles of the long-term contract for cooperation from July 1, 2005, and takes concern in entering into a long-term coal supply contract with MUS. The present legal steps have been caused by MUS´s breach of contracts and CEZ is taking them to adhere to the principles of conscious enterprise.