Czech Court Halts CEZ's $18 Billion Nuclear Deal Amid French Challenge

A Czech court has temporarily blocked CEZ from finalizing an $18 billion contract with South Korea's KHNP to build a nuclear plant due to a complaint from losing bidder, France's EDF. The decision comes after EDF challenged the competition authority's ruling and is also pursuing the case with the European Commission.

A Czech court has intervened in a major energy deal by blocking electricity firm CEZ from proceeding with a potential $18 billion contract with South Korea's KHNP. The court's decision follows a formal complaint by French company EDF, which lost the bid.

EDF is contesting the Czech competition regulator UOHS's prior rejection of its appeal concerning the tender to supply two nuclear reactors, which form a critical segment of the Czech Republic's strategy to transition away from coal-based energy. The contract was scheduled to be signed with KHNP this week.

The Brno Regional Court noted that signing the contract would eliminate any chance for EDF to win the contract, should the legal ruling eventually be in its favor. Meanwhile, the government has taken an 80% stake in CEZ subsidiary EDU II, to alleviate financial pressure on CEZ. EDF is simultaneously pursuing its case with the European Commission.

(With inputs from agencies.)