William Malcolm

Liberty Ostrava, Tameh Reach Settlement In Pricing Dispute

The dispute between Liberty Ostrava and its energy supplier Tameh Czech is over. The parties agreed on a partial settlement of the accumulated energy debts and set the framework for future financial relations. At the same time, Tameh withdrew the lawsuit they filed last November.

“The agreement is a success for both parties and guarantees that the stability of operations on both sides is maintained. We will provide energy supplies for the smelter under the existing contract so that our partner will obtain the necessary energy for steel production. We are happy for the agreed compromise, “says Kristina Červenková, Chairwoman of the Board of Directors of Tameh Czech.

At the same time, both companies declare their willingness to cooperate in the future in accordance with the framework agreement concluded until 2029, where the expected payments for energy consumed according to the source of the daily E15 amount to a total of approximately six billion crowns. However, the parties do not wish to comment on any details of the agreement. “We cannot disclose specific amounts or other parameters of the agreement. Thanks to the agreement reached, both companies can now focus on developing mutually beneficial cooperation, “added Červenková.

“Liberty Ostrava welcomes the conclusion of this agreement. We now want to focus fully on improving production parameters, which is why a reliable supply of energy media from Tameh Czech is essential for us,” says Liberty Ostrava CFO Suyash Pradhan.

In the lawsuit, Tameh Czech stated that Liberty was unwilling to pay the price of energy in the agreed amount. The accumulated difference between the required and paid amounts for the supply of heat, steam, and electricity gradually reached hundreds of millions of crowns.

The dispute over energy prices arose during the sale of the smelter to the current owner. The Tameh Czech plant was part of the original Arcelor Mittal group, but only the smelter moved to Liberty Ostrava.

Tameh Czech, formerly ArcelorMittal Energy Ostrava, is part of the Czech-Polish joint venture Tameh Holding, half-owned by the Tauron ArcelorMittal Group. Ostrava’s Liberty smelter, domestic Tameh, supplies heat, steam, and electricity. It employs a total of 340 workers.