The EPH and Czech Coal Groups agree on settlement
Energetický a průmyslový holding, a.s. (“EPH”) and the Czech Coal Group have ended their disputes by signing an out-of-court agreement on settlement. The two groups have therefore discharged each other from all obligations to one another.
The agreement also contains arrangements on ending the dispute over brown coal supply from Czech Coal to Elektrárny Opatovice (“EOP”), under which the power station will replace coal from Czech Coal with coal supplied from MIBRAG, Germany, which EPH owns through its subsidiary company EP Energy, and from Severočeské doly (part of the ČEZ Group; this involves coal supply rerouting under existing contracts). “This new supply scheme provides Elektrárny Opatovice with an assurance of a supply of coal and, in turn, heat supply to its customers until 2035; thus, the period of uncertainty has ended with finality, with EOP becoming, on the contrary, one of the CHP plants enjoying the very longest guarantees of fuel supply. This will help us to maintain favourable prices for our customer for a long time,” said Jan Špringl, Vice-Chairman of the Board of Directors, EP Energy. Elektrárny Opatovice supplies heat to municipalities and companies in the Hradec Králové, Pardubice and Chrudim areas.