Temelin NPP Insured

By execution with the Czech Nuclear Pool of insurance policies for Temelin nuclear power plant, the power-generation company CEZ performed on Monday, 5th June, one more of the conditions stipulated for putting the NPP into operation. Liability insurance concerning the operation of the NPP before nuclear fuel is charged in reactors is one of important conditions upon performance of which the State Office for Nuclear Safety may grant, as per the so-called Atomic Act, the license to operate a new nuclear facility, i.e. to operate Temelin nuclear power plant.

Representatives of CEZ and the Czech Nuclear Pool signed on this 5th June two insurance policies a contract prescribed by the "Atomic Act" for insurance of liabilities as arising from the operation of the nuclear power plant and a contract for property insurance amounting to the current budget of Temelin NPP construction.

"Representatives of foreign nuclear pools who had recently visited Temelin NPP within a week-long international mission, agreed that Temelin NPP may be insured," said Jaroslav Suk, Finance Director, and added, "The timely completion of a relatively complicated process of insuring the nuclear power plant is believed to be one of crucial milestones in the completion stage of Temelin NPP construction."

Temelin NPP is currently insured both with regard to property and with regard to liability for damages which would be caused by the operation of NPP. The insurance limit in the field of damage to property complies with the international standard. The policy will come into effect as of the moment of charging nuclear fuel in reactors.

The nuclear power plant is insured by a consortium of important, both Czech and foreign insurance companies operating on the Czech market the Czech Nuclear Pool which is CEZ's partner also in insurance policies for Dukovany NPP. The major insurer in the pool is Ceska pojistovna.

CEZ continually pays high attention to the risk management, both with regard to currency risks and with regard to contractual and supplier-related risks. Security of property plays an important role, too. CEZ, as one of few Czech utilities, currently maintains insurance policies covering most of its property. Insurance policies for coal and hydro-electric power plants had been signed in 1997. The execution of liability insurance policies due to the operation of Dukovany NPP had been completed in the end of 1997 following the enactment of the new "Atomic Act". Before the insurance policy was executed, Dukovany NPP had been subject to careful inspections by insurance experts both from the Czech Republic and abroad. The inspections indicated that the operation was safe and reliable and, consequently, good insurance conditions were offered.

The world-wide practice of insuring nuclear power plants in developed countries is stipulated in international agreements and conventions; the Czech Republic has signed the Vienna Convention and stipulated its principles in our "Atomic Act".

Ladislav Krizpress, spokesman of CEZ

5. 6. 2000