WRITTEN QUESTION P-3639/01 by Daniela Raschhofer (NI) to the Commission. Privatisation of the energy industry in the Czech Republic.
Date: 2002-01-08
Institutions: European Parliament, Provisional data
Subjects: Czechia, accession to the European Union, competition policy, electrical energy, energy distribution, energy transport, privatisation

4.7.2002

EN

Official Journal of the European Communities

C 160 E/157

Reply

(25/26 March 2002)

No steps are, or could be taken by the Council to coordinate the content of history textbooks used in
schools in the EU, being expressly excluded by Article 149 paragraph 1 of the Treaty which states that
Member States are responsible for the content of teaching.

(2002/C 160 E/197)

WRITTEN QUESTION P-3639/01

by Daniela Raschhofer (NI) to the Commission

(8 January 2002)

Subject: Privatisation of the energy industry in the Czech Republic

In the Czech Republic, there are plans for selling the State’s shares in the energy industry. These comprise
a 67 % share in the energy supplier CEZ and majority holdings in six further Czech distribution
companies.

There are a number of striking features to these privatisation plans in the Czech energy industry: it is
intended to sell all the above shares to a single investor, who, as a vertically integrated undertaking, would
then hold more than 80 % of the Czech electricity market. Moreover, by acquiring a wholly-owned
subsidiary of CEZ 8 CEP 8 the new market leader would gain complete control over the Czech
transmission network.

The Czech Government is attaching highly questionable conditions to the sale itself. Until 2010, parts of
the total share package may be sold only with the consent of the Czech Government. Until 2015, the new
owner is to be compelled to export massive amounts of electricity, to buy some 27 million tons of Czech
lignite per annum, and to fully operate the Dukovany and Temelin nuclear power plants.

Irregularities and breaches of the law are also said to have occurred in connection with the invitation to
tender and in the selection of the privatisation adviser.

What is the Commission’s view of the export and compulsory purchase requirements which the Czech
Government intends to impose, in the light of the common position on the energy chapter, in which the
Czech Republic is called upon not to conclude any long-term agreements on taking delivery of products?

Does the Commission see any contradiction between the monopoly which the new owner is expected to
acquire as a result of the sale 8 including a monopoly on control of the transmission network 8 and the
principles concerning liberalisation of the energy market and the opening-up of the energy market pledged
by the Czech Republic in the common position on the energy chapter?

Has the tender procedure complied with all the criteria laid down in EU law?

Answer given by Mr Verheugen on behalf of the Commission

(7 February 2002)

The Commission is monitoring developments in the energy sector of the Czech Republic with particular
reference to the competition policy obligations of the Czech Republic under the Europe Agreement and in
the framework of the accession negotiations.

Furthermore, the Commission has received several comments and complaints regarding the privatisation of
the Czech electricity market.

In order to allow the Commission to make a proper analysis of the competition dimension of this
privatisation, we have, as a first step, contacted the Office for the Protection of Competition of the Czech
Republic, which is responsible for enforcement of the competition rules, to obtain its assessment of the
case and to ascertain what steps have been taken.

C 160 E/158

Official Journal of the European Communities

EN

4.7.2002

The Commission is not fully informed of the conditions attached to this privatisation. However, it should
be recalled that the Commission does request to candidate countries to remain cautious with respect to
‘stranded costs’ in entering into any new long term commitments.

As regards the transmission network, the Czech Transmission operator is currently an independent legal
entity and is thus compatible with the current acquis, Directive 96/92/EC of the Parliament and of the
Council of 19 December 1996 concerning common rules for the internal market in electricity (1). The
Commission’s proposal (2) to amend the relevant Directive foresees criteria for ensuring the independence
of the transmission operator.

As regards the tendering procedure,
the Czech Republic is required to align with Union public
procurement rules by the time of accession but has not yet done so. This delay was criticised in the
Commission’s 2001 Regular Report (3) which called upon the Czech authorities to ensure ‘clarity and
predictability in this field, including necessary legislative amendments strictly limiting the use of fast-track
procedures to emergency situations and excluding the possibility of arbitrary government decisions’.

(1) OJ L 27, 30.1.1997.
(2) OJ C 240 E, 28.8.2001.
(3) COM(2001) 700 final.

(2002/C 160 E/198)

WRITTEN QUESTION E-3650/01

by Cristiana Muscardini (UEN) to the Council

(15 January 2002)

Subject: Somalia and anti-terrorism measures

As part of the action being taken to combat terrorism the al-Barakat financial network has been blocked
with a view to preventing fundamentalist terrorists from having large sums of money to use for illegal
activities. However, this financial network is used by Somali emigrants to send money back to relations in
Somalia.

Accordingly, can the Council ask the national governments to open an official channel through their
national credit institutions which will enable political refugees and emigrants from Somalia who are legally
resident in other countries to send money back to relations in Somalia?

Reply

(25/26 March 2002)

The Council has not discussed the question raised by the Honourable Parliamentarian concerning the
opening of an official channel through which political refugees and emigrants from Somalia, who are
legally resident in other countries, can send money back to their relations in Somalia.

(2002/C 160 E/199)

WRITTEN QUESTION E-3651/01

by Roberta Angelilli (UEN) to the Commission

(15 January 2002)

Subject: The dangers of the Rome underground system

The Public Prosecutor’s Office and the Provincial Fire Brigade recently carried out safety inspections on the
Rome underground system, particularly Line A, where the safety facilities and procedures have been found
to have a large number of serious shortcomings.