Press releases pg. 186

The power-generation company CEZ was served last week the ruling of the Bureau for Protection of Economic Competition claiming that CEZ had misused its dominant position to the detriment of the mining company Mostecka Uhelna by reducing its purchases of lignite from that company due to the lower demand for electricity in the last year. For this breach of law, CEZ was penalized with a penalty amounting to CZK 10 million.

The irregular general meeting of the power-generation company CEZ which was held today reconfirmed all items of agendas which had already been approved by CEZ irregular and regular general meetings held last year. By that, the legal uncertainty has been removed on the parts of the company, its shareholders, as well as any third persons, which uncertainty was caused by the complaint lodged by a minority shareholder who had questioned the validity of the irregular general meeting of 5th January 1999 and, consequently, also the validity of resolutions adopted by the general meeting of 22nd June 1999.

Our power-generation company CEZ and Dalkia Co. (part of the supranational concern Vivendi) have established a joint-venture called JVCD, the objects of which include complex economic and environment-friendly optimization of heat and electricity generation in the north of Moravia. Dalkia has 51 % and CEZ 49 % in the registered capital of the new company, revenues will be divided in the ratio 60 % for CEZ and 40 % for Dalkia.