Euractiv: French EDF files complaint with Commission over ČEZ decision in Czechia

French energy company EDF has filed a complaint with the European Commission (EC). It objects to the decision by Czech ČEZ Group and the Czech government to appoint South Korea’s KHNP to build new nuclear reactors at the Dukovany power plant instead of EDF. The Euractiv website reports. A Commission spokesperson confirmed receipt of a letter on the matter, according to the website.

EDF filed the complaint under the EU’s Foreign Subsidies Regulation, Euractiv reports. The French company believes the South Korean government could provide KHNP with unfair subsidy support, potentially jeopardising competition in the European market, the website says.

At the end of the summer, both unsuccessful bidders—EDF and US company Westinghouse—challenged the results of the tender, the largest contract since the Czech Republic was established, before the Czech Office for the Protection of Competition (ÚOHS). The office subsequently launched formal proceedings.

EDF’s complaint to the EC has nevertheless opened up another legal avenue to challenge the tender, Euractiv reports. The EU’s Foreign Subsidies Regulation, adopted only last year, allows the Commission to investigate companies bidding for public contracts in EU member states if the value of the contract exceeds 250 million euros (6.3 billion Kč). Two reactors are currently planned at Dukovany, each expected to cost 200 billion crowns at current prices. The new rules are part of the EU’s efforts to more actively defend the interests of European companies in the context of international trade.

The Commission has already launched several investigations into foreign subsidies under the regulation. These include two cases opened last April involving Chinese consortia bidding for a solar photovoltaic project in Romania, and a case opened in February concerning Chinese train manufacturers in Bulgaria.

Based on the information EDF provided in its letter, the European Commission could soon launch a preliminary investigation into KHNP. If sufficient evidence is found, EU authorities could then open an in-depth investigation, Euractiv concludes.