CEZ to shut one plant for summer, may curb others

PRAGUE May 18 (Reuters) - Czech power group CEZ (CEZPsp.PR) will shut one of its power stations for more than three months and may curtail production at two others to cut costs, a spokesman said on Monday.

CEZ's Ladislav Kriz said the group planned to close its hard coal-fired power station in Detmarovice, north-east of the Czech Republic, and instead use its less costly units or purchase cheaper power on the energy exchange.

The shutdown will last from May 21 till the end of August, Kriz said. "Energy prices are such that... it is definitely possible to buy cheaper on the market," Kriz said.

Prices of electricity have fallen to around 34 euros ($46) per megawatt hour from last year's record highs.

Coalminer NWR NWRS.L NWRSsp.PR, which showed a surprise first-quarter loss, is the main supplier to the 800-megawatt Detmarovice plant [ID:nLI215935].

NWR contracted this year's thermal-coal prices at 79 euros per tonne on average, 14 percent higher year-on-year, the only segment where prices rose. Prices of coking coal fell 33 percent.

Kriz said a drop in demand this year was bigger than expected and CEZ was also considering trimming production in its central Bohemian lignite-fired Melnik and Chvaletice units.

But he said the output cuts would have a limited impact on overall production this year as costlier plants are usually running at low levels during the summer when consumption drops. (Reporting by Jan Korselt, writing by Jana Mlcochova; Editing by Dan Lalor) ($1 = 0.7422 euro)