Final Word from Thursday, May 26, 2011

ČEZ's share price has risen 15% since the Japanese nucleardisaster, suggesting that investors have lasting faith in thecompany's profit-making abilities. The post-Fukushima ČEZstory does indeed sound good. The Germans will apparentlybe pulling out of nuclear power precisely as ČEZ is revvingup to boost its own nuclear output in about 2021, just in timeto fill the void on the market. But what if something goeswrong along the way? For example, what if Germany decidesto ban imports of nuclear electricity. Or if the stress tests andnew safety requirements for nuclear plants make the Temelínexpansion prohibitively expensive? Or what if banks refuseto fund the risky project unless a state guarantee is granted?With the expected future availability of cheap natural gas, isit so farfetched to imagine that investors will prefer a chain oflower-risk and lower-cost gas-fired plants to one giant nuclearalbatross? It's still early to be making long-term bets on a ČEZfuture that is dependent on the completion of Temelín.

Glossary of difficult words

Temelín mon amour - an allusion to the French New-Wave film "Hiroshima mon amour" and to the fleeting nature of love and to the lasting impact of nuclear disaster;

to rev up - to operate with increasing speed;

void - an emptiness caused by the loss of something;

farfetched/far-fetched - not readily believable because of improbable elements contained therein;

albatross - a constant, worrisome burden.


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