ÚOHS: ČEZ Teplárenská can acquire Czech heating company Actherm Distribuce in Chomutov

The Office for the Protection of Competition (ÚOHS) has approved the acquisition by ČEZ Teplárenská, part of ČEZ Group, of Prague-based Actherm Distribuce, part of the ADI Heat & Power group, which supplies heat and hot water in Chomutov. It has, however, set conditions to preserve competition. ÚOHS announced the decision in a press release.

„During the administrative proceedings, the Office found serious concerns that the merger could significantly distort competition in the market for centralised heat supply via the secondary distribution network in Chomutov,“ ÚOHS said.

In Chomutov, Actherm operates heat-exchange stations and secondary heat distribution networks. It takes heat from the primary distribution network and delivers it to end customers via its secondary network. There was a risk that, after the merger was completed, ČEZ Teplárenská could prevent new heat producers from connecting to the secondary network in Chomutov, or existing producers from expanding their operations there, which would have a negative impact on end customers.

ÚOHS therefore set conditions to prevent this. „Under these commitments, by the end of 2028 ČEZ Teplárenská must allow competitors in the Chomutov heat market to connect their heat production facilities to the secondary distribution network operated by Actherm on the date the decision becomes legally effective. ČEZ Teplárenská has also undertaken to purchase heat from these facilities on non-discriminatory terms and in quantities that will not jeopardise the reliable and safe operation of the affected heat supply system or restrict the use of renewable sources at another heat source connected to the heat distribution system,“ ÚOHS said.

According to public register data, Actherm Distribuce was established in 2017 and is part of the ADI Heat & Power group. According to the register of beneficial owners, Petr Hodan and Petr Kalianko hold stakes in both the parent group and Actherm Distribuce.

According to Actherm Distribuce’s 2022 annual report, published in the Collection of Deeds, the company reported total revenue of 390 million crowns and ended the year with a net profit of 21.6 million crowns.

ČEZ Teplárenská, part of the partly state-owned ČEZ energy group, says on its website that it supplies heat to approximately 7700 delivery points. In addition to more than 134.000 households, its heat customers include hospitals, government offices, schools and industrial companies. Its total annual heat supply is around 7100 terajoules. It supplies heat to customers in 33 towns and cities in the Ústí nad Labem, Karlovy Vary, Central Bohemian, Pardubice, Hradec Králové, Moravian-Silesian and South Moravian regions. In the South Moravian Region, it also exports heat across the border from the Hodonín power plant to the Slovak town of Holíč.

According to its 2022 annual report published on the company’s website, the company reported net revenue of 3.1 billion crowns and ended the year with a net profit of 158 million crowns.