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ČEZ Group

File:GroupCEZ EN.png
Company type	Public (PSE: CEZ, WSE: CEZ, FWB: CEZ)
ISIN	CZ0005112300
Industry	Energy
Founded	1992
Headquarters	Prague, Czech Republic
Products	electricity generation and distribution, natural gas, cell phone operator
Revenue	209.76 billion CZK (2011)
Operating income	101,927,000,000 Czech koruna (2022)
Net income	40.8 billion CZK (2011)
Total assets	1,107,380,000,000 Czech koruna (2022)
Owner	Ministry of Finance (69.78%)
Number of employees	26,647 (31.12.2013)
Website	www.cez.cz

ČEZ Group (Template:Lang-cs České Energetické Závody) is a conglomerate of 96 companies (including the parent company ČEZ, a.s.), 72 of them in the Czech Republic. Its core business is the generation, distribution, trade in, and sales of electricity and heat, trade in and sales of natural gas, and coal extraction. CEZ Group operates also in Bulgaria, Germany, Hungary, Poland, Romania, Slovakia and Turkey. ČEZ, a.s. is listed on Prague Stock Exchange and Warsaw Stock Exchange.

ČEZ is the largest utility and biggest public company in Central and Eastern Europe. Its political activities have recently come under scrutiny. According to the Economist, "though nominally state-run, many see the power flowing the other way: from CEZ’s board into politics". Capital Group Companies invested 2.98% into ČEZ Group. As of late 2010 the EU is investigating the company's activities.

Apart from the production and sale of electricity, CEZ Group also deals in telecommunications, informatics, nuclear research, planning, construction and maintenance of energy facilities, mining raw materials, and processing energy by-products. CEZ Group is currently one of the three largest heat suppliers in the Czech Republic.

The interconnection of electricity generation, distribution, and trade within CEZ Group has brought the Czech energy sector closer to EU standards applicable in Western European countries. Within Europe, CEZ Group is the most profitable and the least indebted power company. This has a positive effect on the CEZ, a. s. stock prices, which are among the best developing prices among european energy companies. Excellent economic results are a logical outcome of fulfilling the company strategy based on successful acquisitions in Southeastern Europe, cost optimization, and output orientation.

Comments made by third parties under the market test have shown no need to materially change the commitments proposed by ČEZ to the European Commission in June 2012. Under the Settlement Agreement, ČEZ undertakes to sell one of five specific power plants with an installed capacity of at least 800 MW.

Power stations

ČEZ Group is an operator of various energy sources. Most important are listed (in the Czech Republic, if not indicated):

• nuclear power plants
  • Temelín (2000 MW - 2 * 1000)
  • Dukovany (2000 MW - 4 * 500)
• coal-fired power plants
  • Dětmarovice Power Station (800 MW - 4 * 200)
  • Hodonín Power Station (105 MW - 50 + 55) (world's third largest power plant fired by biomass List of largest power stations in the world)
  • Chvaletice Power Station (800 MW - 4 * 200)
  • Ledvice Power Station (330 MW - 3 * 110)
  • Mělník Power Station (770 MW - 2 * 110 + 500)
  • Počerady Power Station (1,000 MW - 5 * 200)
  • Poříčí Power Station (165 MW - 3 * 55)
  • Prunéřov Power Station (1,490 MW - 4 * 110 + 5 * 210)
  • Tisová Power Station (295 MW - 3 * 57 + 125 + 13)
  • Tušimice Power Station (800 MW - 4 * 200)
  • Elcho Power Station (Poland, 220 MW - 2 * 110)
  • Skawina Power Station (Poland, 492 MW)
  • Varna Power Station (Bulgaria, 1,260 MW - 6 * 210)
• hydroelectric power station
  • Lipno (122 MW)
  • Orlík (364 MW)
  • Kamýk (40 MW)
  • Slapy (144 MW)
  • Štěchovice (23 MW)
  • Vrané (14 MW)
  • Střekov (20 MW)
• pumped storage plants
  • Dalešice (450 MW)
  • Dlouhé stráně (650 MW)
  • Štěchovice (45 MW)
• wind power plants
  • Fântânele Wind Farm (Romania, 600 MW, the largest wind farm in Europe
• solar power plants
  • Mimoň Solar Park (18 MW)
  • Ralsko Solar Park (38 MW)
  • Ševětín Solar Park (30 MW)
  • Vranovská Ves Solar Park (16 MW)
• other smaller energy sources

Carbon intensity

Electricity capacity and production

Source:Helgi Library

Source:Helgi Library

Shareholders and stock listing

In 1994 a minor stake in the company was privatized using voucher privatization. If citizens invested all their vouchers (sold for 1000,- Kčs) in ČEZ, they gained 33 stocks (330 current shares after stock split). In 2007 the Czech government decided to gradually sell another 7% stake of ČEZ on the stock market, but due to the stock price fall during spring 2009, affected by financial crisis, selling was suspended. In 2008 the company decided to repurchase 9% of the company's shares.

As of December 31, 2011, the Czech Republic represented by Ministry of Finance remained the company’s largest shareholder with 69.78% stake in the stated capital. Other shareholders included:

• Chase Nominees Ltd. (4.83%)
• Citibank Europe plc (4.8%)
• Private individuals (4.31%)
• Československá obchodní banka (4.17%)

The company is traded on the Prague, Warsaw, Frankfurt and RM-SYSTÉM Czech stock exchanges. and since 2001 company is paying annual dividends.

Electric vehicles

The building of a network of public charging stations for electric vehicles got fully underway in 2011. The first public charging station – in front of ČEZ’s headquarters in Prague’s Duhová Street – opened on November 30, 2011. As of December 2011, seven CEZ Group public charging stations were in operation, in Prague and Chrášťany, Prague-West district. ČEZ's given charities electric cars to use and test. Between 50 and 100 electric cars being made available over the coming years. The first two vehicles – a Fiat Fiorino Combi and a Fiat Fiorino Cargo – went to a senior citizen health care charity based in Prague.

Influence on politics

ČEZ is the largest utility and biggest public company in Central and Eastern Europe. Its influence on the Czech politics and connections to Russia have recently come under scrutiny. According to the Economist, "though nominally state-run, many see the power flowing the other way: from ČEZ’s board into politics".

The management of ČEZ has financed the country’s largest political parties – the Civic Democratic Party (ODS) and the Social Democrats (CSSD). One analysis points out that the financing has resembled that coming from PPF and J&T, two firms which have been highly active in Russia since the early 1990s and their senior management is known to have links to the former Czechoslovak StB security service and the Soviet KGB.

A Czech court recently ruled that, as a state-owned company, CEZ must disclose political activities.

Leaked pictures show politicians across political spectrum, including a former Prime Minister, holidaying with ČEZ lobbyists in Italy.

As of late 2010 the European Union is investigating ČEZ. The company's offices were raided in November 2010.

ČEZ selected a mysterious company called CEEI to construct a billion dollar nuclear storage facility for the Czech Republic. The company's paper trace ends in U.B.I.E, a company registered in Liechtenstein. Russia's honorary consul is named as its director. The company is believed to be under Russian control. CEEI's directors include Václav Klaus's former chief of staff (Jiří Kovář) and a man who is jail for kidnapping.

Investing in the environment

In its recent-year history, the parent company of CEZ Group invested a total of over 7 billion euro into development and ecological measures. CEZ Group’s largest investment into the environment was an extensive program aimed at the desulphurization of its coal-fired power plants. Between 1992 and 1998, the group invested a total of 1.58 billion euro into the project, as a result of which the levels of SO2 were reduced by 92%, ash particles by 95%, nitrogen oxides by 50%, and carbon dioxide by 77% from values in the early 1990s.Since the end of 1998, all of these plants have been fitted with equipment reducing pollutant emissions.

The technology and parameters for reducing pollutant emissions employed in the Czech Republic comply with the highest standards of available technologies recommended by the European Union, and enable the group to meet air protection regulations. Furthermore, nearly 90% of the energy by-products from the desulphurization process no longer classify as waste, and may be further utilized. The surroundings of coal-fired power plants have undergone a series of technical and biological reclamations, which are aimed at removing the effects of storing energy by-products and revitalizing the landscape. Refurbishment of devices measuring emissions has taken place in all coal power plants since 2005, and CO2 measurements have also began.

CEZ group has made a major ecological investment in the refurbishment of its coal fired power plants, which will further reduce the volume of SO2 and NOx emissions by over 50%. A notable step will be the reduction of CO2 emissions by 8% of 1990 levels, in accordance with fulfilling the Kyoto Treaty by 2012. CEZ Group is the first company in the European Union to undertake the complex refurbishment of its facilities in compliance with new EU guidelines.

Other significant environmental investments were realized through an alternative fuel project and the implementation of the Environmental Management System (EMS). As a result of these environmental investments, which in the case of CEZ Group are the highest of any other Czech company, the group (including hydropower and nuclear facilities) fulfills the most stringent EU standards.

References

1. CEZ Group Annual Report 2013, page 64
2. ^ Czech Power Games: How Russia Is Rebuilding Influence In The Former Soviet Bloc. RFE/EL. September 26, 2010
3. ^ Czech Efforts to Reduce Dependence on Russian Energy Faltering by Jiri Kominek, Jamestown Foundation (27 November 2009)
4. ^ CEZ and Czech energy - No, minister. April 8th 2010. The Economist.
5. Market Test Results Confirm the Settlement Agreement between ČEZ and the European Commission
6. Energy Regulatory Office - ČEZ, a.s. installed power (31. 12. 2009)
7. CEZ Group: The Largest Wind Farm in Europe Goes Into Trial Operation
8. ^ | http://www.helgilibrary.com/reports/index/cez-at-a-glance-dec-2013-helgi-analytics | 2014-02-09 Cite error: The named reference "ČEZ at a Glance" was defined multiple times with different content (see the help page).
9. "Kuponová privatizace: pokus, který nemá obdoby" (in Czech). iDNES.cz. October 9, 2006. Retrieved August 27, 2014.
10. Martina Lustigová (March 3, 2007). "Vláda schválila prodej sedmi procent akcií společnosti ČEZ" (in Czech). Czech Radio. Retrieved August 27, 2014.
11. "Stát navýšil svůj podíl v ČEZ. Na téměř 70 procent" (in Czech). Hospodářské noviny. February 13, 2009. Retrieved August 27, 2014.
12. ^ "CEZ Group Annual Report 2011" (PDF). ČEZ. April 3, 2012. Retrieved August 27, 2014.
13. http://www.autobloggreen.com/2009/07/18/report-czech-charities-will-test-dozens-of-electric-cars/
14. ^ Further Reputational Damage to ČEZ As EC Launches Third Inquiry Into Czech Electricity Market. The Global Insight. 23 September 2010

External links

• ČEZ Group website

• ČEZ Group Report

v t e PX companies of the Czech Republic
CETV ČEZ Erste Group Bank Kofola ČeskoSlovensko Komerční banka O2 C.R. Pegas Nonwovens Philip Morris CR STOCK Vienna Insurance

v t e WIG30 companies of Warsaw Stock Exchange
Alior Bank Allegro Asseco Poland Bank Pekao Benefit Systems Budimex CCC CD Projekt Cyfrowy Polsat Dino Polska Enea SA Eurocash Grupa Azoty Grupa Kęty Jastrzębska Spółka Węglowa KGHM Polska Miedź Kruk LPP mBank Bank Millennium Orange Polska Orlen SA Pepco PGE Polska Grupa Energetyczna PKO Bank Polski PZU SA Santander Bank Polska Tauron Polska Energia Text XTB

• Companies in the WIG30
• Companies listed on the Warsaw Stock Exchange
• Power companies of the Czech Republic
• Nuclear power companies