Czech utility CEZ AS (BAACEZ.PR) Thursday said it must resolve
disagreements with the Albanian government to sell its troubled
distribution subsidiary there, but stopped short of recognizing claims
that it must pay compensation.
Albania's
energy ministry, which has a 24% stake in the company, has threatened
to revoke CEZ's operating license and opposes the unit's sale. It claims
CEZ isn't fulfilling contractual obligations and has caused $1 billion
in damages.
"The Albanians haven't explained of which items the $1 billion
[in damages] is comprised of. Apparently, it includes assumed debt
which they would like to recover," said Barbora Pulpanova, CEZ's
spokeswoman.
The Czech company earlier this month said it would like to
sell its 76% stake in the loss-making unit and is seeking expressions of
interest from potential bidders.
"We are aware that consent of state institutions is necessary
for a potential sale, and of course we wouldn't [try to] sell the
company to anyone if it were impossible to gain that consent," Ms.
Pulpanova said.
CEZ didn't specifically respond to a request for comments on
new Albanian allegations that the distribution company is buying
electricity wholesale for EUR18 per megawatt hour and selling it for
EUR80/MWh.
Ms. Pulpanova said that all these new claims only politicize the already fragile situation.
CEZ earlier said it has been forced to buy power at higher prices than it is able to sell it for, causing financial losses.
In the first half of this year, CEZ's Albanian unit posted a
loss on earnings before interest, taxes, depreciation and amortization,
or Ebitda, of 2.3 billion koruna ($120.8 million).