EU state aid regulators to investigate Czech aid for new nuclear plant

EU competition enforcers opened on Thursday an investigation into Czech aid for a new nuclear power plant, saying they have doubts whether the measure complies with EU state aid rules. The European Commission said it would examine the appropriateness and proportionality of the aid, its impact on competition in the market and if the minimum is kept to the minimum.

The Czech measure for the plant in Dukovany consists of a low-interest state loan of about 7.5 billion euros to cover 100% of the construction costs, a 60-year power purchase agreement between the company set up to carry out the project and a State-owned company a mechanism to protect the CEZ Group and the State in case certain unforeseen events occur.