Czech PM Fiala in HN: Planned ČEZ transformation will harm no one; we are looking for the right model and timing

The planned transformation of energy company ČEZ is necessary, among other things, for the development of nuclear energy, but it will certainly harm no one, according to Prime Minister Petr Fiala (ODS). At the same time, no one should expect to make a “massive” profit from the state’s plans, the prime minister said in an interview with today’s Hospodářské noviny (HN). The government is now looking for a suitable model and the right timing, he said, but it is not planning to squeeze out minority shareholders, nationalize the company or take steps that would disadvantage anyone.

“What I can say is that no one needs to worry. Our government is not planning—and will not take—any steps to squeeze out minority shareholders, nationalize the company or disadvantage anyone,” the prime minister said about the planned restructuring of ČEZ.

The government is currently looking for the right model and the right moment to transform the strategic company, which is majority-owned by the state, he said. “But no one needs to worry that we would harm them. On the other hand, those who are counting on making a massive profit from the state’s plans should not expect that either,” he added.

The prime minister did not answer whether ČEZ’s generation business would be under the state’s full control by autumn 2025, when Fiala’s government’s term is due to end. “But I am convinced that some kind of transformation should and must take place, if only because we want to build capacity in nuclear energy, where the state has a crucial role,” he added.

The state currently holds around 70 percent of ČEZ shares. In May, the government approved a draft law on the transformation of business companies, under which splitting up companies would require 75 percent of the votes of shareholders present at a general meeting, rather than the 90 percent of votes of all shareholders currently required. Analysts say the proposal will make it easier to split up and nationalize part of the ČEZ Group. Fiala has previously rejected claims that the law targets a specific company. At the same time, he acknowledged that the government wants to strengthen state control over energy infrastructure, which he said had proved important during the recent energy crisis.

Fiala also said in the interview that the government wants chips and batteries to be manufactured in Czechia. This is a way to gain a competitive advantage over other countries, he said, but it cannot be done without public support.

One of the most significant investments in Czechia looks promising, according to Fiala: US chipmaker Onsemi’s planned expansion of production at its plant in Rožnov pod Radhoštěm. The corporation wants to invest two billion dollars and is choosing between the US, Korea and Rožnov. “Before this major strategic investment is agreed, the government has granted an investment incentive to another company that makes components for microchips,” the prime minister said, without providing further details. Czechia is trying to attract investors, he said, but it cannot compete with countries such as those in Asia on energy prices. A shortage of workers is also a disadvantage, Fiala said.