Press releases pg. 186

The State Office for Nuclear Safety (SONS) has granted on 31 st January 2000 to the power-generation company CEZ its permit to locate the construction of the central in-process store of spent nuclear fuel at Skalka. SONS had examined fitness of this locality with regard to nuclear safety and radiation protection and CEZ application with regard to particulars as stipulated by the "Atomic Act".

The Austrian Federal Ministry for Economic Affairs had examined at the beginning of this year supplies of electricity by CEZ to the Austrian market. The Federal Ministry is obligated under EIWOG Act (§ 13) to do so at each purchase of electricity from third countries.

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.