BRUSSELS/PRAHA - The European Commission (EC) has called on the Czech Republic to postpone the signing of a contract with Korea Hydro & Nuclear Power (KHNP) for the construction of two new nuclear units at the Dukovany power plant. The EC is currently investigating whether the South Korean firm has received foreign subsidies that could distort competition and the EU's internal market, CTK reported, citing a letter sent to Czech Industry and Trade Minister Lukáš Vlček by Commission Vice-President Stéphane Séjourné.
In the letter, the European Commission draws attention to the new EU regulation on foreign subsidies, which allows the impact of state aid from non-EU countries on the European market to be examined. The Commission has the power to temporarily block large public contracts if it suspects that a bidder may have been unduly favoured by foreign financial support. In the case of KHNP, a South Korean company, there are concerns that it may have received state aid that would have allowed it to bid more favourably than its competitors. This could undermine the principle of equal competition between bidders for the contract. The European Commission is therefore asking the Czech Republic to wait to sign the contract until the vetting has been completed.
Minister Vlček has not yet officially commented on the appeal. The Czech government has long considered the completion of Dukovany to be a strategic project for ensuring the country's energy security and a key element in reducing emissions. After a thorough evaluation, the tender for the supplier of the two new nuclear units was awarded to KHNP of Korea. Nuclear power has been re-emerging in recent years as a stable and emission-free source of electricity. The Czech Republic plans to significantly strengthen its nuclear fleet in the coming decades, not only at Dukovany but also at Temelin. However, the involvement of international suppliers is a sensitive issue, especially in the context of EU rules and geopolitical interests.
The European Commission will inform the Czech authorities about the results of the audit in the coming weeks. If it is proven that KHNP received illegal subsidies, the Czech Republic's approach to the tender may be reconsidered.
gnews.cz - GH
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