CEZ has reacted to the Czech government’s refusal to provide a financial guarantee for the construction of two new nuclear reactor blocks at the Temelin power station by cancelling the project. The company’s share price promptly jumped 3% as investors rewarded the removal of an enormous source of risk. They’ll also have been pleased at the chance of receiving dividend payments, since the CZK 300bn monster project looked certain to consume the company’s impressive profits. Attention will now shift to a more pressing matter: renewing the license of four nuclear blocks at the company’s plant in Dukovany for at least another ten years. The current license expires in 2015.
