Babiš: First steps towards nationalising Czech utility ČEZ to be taken in June

The state will take the first steps towards nationalising energy company ČEZ at the company’s annual general meeting in June this year. Prime Minister Andrej Babiš (ANO) told journalists today. However, he did not specify the concrete steps. He confirmed that the government’s plan to take full control of ČEZ remains in place. According to him, this is necessary for better control over energy price developments and the further development of the energy sector. He aims to complete the nationalisation by the end of the electoral term in 2029.

The state holds around 70 percent of shares in ČEZ through the Ministry of Finance, with the remainder owned by minority shareholders. By buying out the minority shareholders’ stake, the state would become the sole owner.

Speaking today about the planned nationalisation of the company, Babiš said it would not happen quickly, but the first steps would be taken at the company’s June annual general meeting. “The nationalisation plan remains in place. It is important so that we can help both citizens and the entire economy. Energy is key to this,” the prime minister said. According to him, the company should never have been privatised.

The government had already indicated in recent months that the nationalisation process would begin this year and should take around two and a half years. According to a January statement by Minister of Industry and Trade Karel Havlíček (ANO), the total price will depend on the share price at the time. However, he previously admitted that nationalisation could cost approximately CZK 250 billion.

The opposition has long criticised the plan to nationalise ČEZ. According to it, it would have a significant impact on both the company’s debt and the state budget, as ČEZ would no longer pay dividends from its profits. “It makes no economic sense,” former Minister of Industry and Trade Lukáš Vlček (STAN) said previously.

ČEZ earned CZK 27.4 billion last year, with the company’s net profit down CZK 1.7 billion year on year. The company’s operating profit and revenues also declined year on year.