Křetínský, Tykač or Bakala. Who are Czech energy magnates?

Who really owns energy assets in the Czech Republic? Recently, the public has become interested in the influence of magnates on politics, the media and society. The Czech market is increasingly giving rise to “big players” who possess not only capital but also strategy. And energy is among the most valuable commodities. What is their influence on the energy sector? Many entrepreneurs have multiplied their money or become markedly wealthy directly through investments in energy.

Let us look at the best-known names, while also outlining their areas of energy interest. When money is at stake, environmental considerations take second place. The future of the energy sector in Czech territory is in the hands of a few select individuals:

Daniel Křetínský

Among the best-known entrepreneurs today are Daniel Křetínský and his Energy and Industrial Holding (EPH). It saw a major boom in 2009, when the holding was established, and Křetínský suddenly became a significant player in the energy sector. It should be noted that this was also with the help of PPF, Patrik Tkáč and the J&T group.

The entire holding is divided into two parts. The first, EPIF (EP Infrastructure), deals with the transmission and distribution of natural gas, electricity distribution and heat production. The second part, EP Power Europe, brings together foreign investments, including electricity producers, mining companies and renewable energy sources in Europe. In Czechia, EPH manages, for example, Pražská teplárenská, EP Energy Trading and the Opatovice power plant. Abroad, these include Polish company PG Silesia and Germany's Kraftwerk Mehrum GmbH, which operates a hard-coal power plant. Other countries where EP operates include Slovakia, Italy, the United Kingdom and Hungary.

Karel Komárek

Another player in the energy sector is Karel Komárek, with his KKCG investment group, which focuses primarily on oil and natural gas extraction. The KKCG group includes MND a.s., which is engaged in the exploration and extraction of oil and natural gas in the Czech Republic, while also trading abroad.

In the Czech Republic, it extracts at around 36 sites, mainly in South Moravia. MND's business activities also extend abroad, specifically to Ukraine and Georgia. It is the largest oil and gas extraction company in the country and offers so-called direct-from-source gas.

Pavel Tykač

Křetínský and Tykač were in dispute for a long time, but eventually settled their differences and buried the hatchet. The legal disputes have ended, but their mutual conflict may continue. Tykač's Sev.en Energy group mainly controls the coal business, owning the Chvaletice power plant and set to acquire Počerady from 2024.

In 2018, the group was restructured and newly took the name Se.ven Commodities. This group also has operations abroad, specifically coal- and gas-fired power plants in the United Kingdom and Australia.

Tykač's business activities overlapped with Křetínský's in relation to German power plants owned by Engie. Both holdings had the same interests: buying up older coal- and gas-fired power plants. Foreign companies are disposing of them because of the shift towards renewable sources. Křetínský and Tykač see them as a backup source of stable energy supplies.

Zdeněk Bakala

The final player in the field, and perhaps the most discussed name in energy, was—and to some extent still is—Zdeněk Bakala. In 2004, the Gross government sold the state's stake in OKD to Karbon Invest, which was backed by entrepreneurs Petr Otava and Viktor Koláček.

Karbon Invest subsequently sold the company to Bakala's Netherlands-based NWR (New World Resources). It was one of Europe's most significant hard-coal producers, not only thanks to its strategic location. However, the company fell into decline, partly due to falling coal prices, and OKD was once again in the hands of our (in)competent state. The OKD case remains unresolved and is like an ember that continues to smoulder.

The Czech state sued Bakala and his business partner Kadas, demanding the return of paid dividends. However, a court in the United Kingdom ruled in favour of Bakala and his ally. Their company CERCL Mining was the majority shareholder in NWR. The OKD case brought about the end of NWR. After declaring insolvency, OKD came under the control of state-owned Prisko. Coal is still mined in OKD's mines, but the mines are gradually being closed. Likewise, Bakala is gradually withdrawing from all his activities in Czechia.

The state

The state forms another significant and separate category in the energy sector. The state is the majority owner of ČEZ, which is the most important player both domestically and abroad, mainly in Central and South-Eastern Europe. The ownership structure is as follows: around 70% is held by the Czech Ministry of Finance, with the remainder divided among minority shareholders. ČEZ produces energy from various sources, including nuclear, coal, solar, wind and hydropower plants. It is in fact one of the most profitable Czech companies and holds a monopoly position in electricity generation. Daniel Beneš has been chief executive since 2014.

The energy industry may be an attractive business for entrepreneurs, but they must not overlook the important role played by the state. This is why this field also involves complicated sales, state machinations and public pressure. Big business is still largely based on coal, which is losing public favour. A new trend is emerging that favours more environmentally friendly methods of electricity generation.