* Completion was planned for 2020
* Delay could be a few years
* Supervisory board member says delay in supplier tender
* Potental suppliers had asked for delay
By Jana Mlcochova and Jan Korselt
(Adds analyst comment, background, recasts)
PRAGUE, Oct 13 (Reuters) - Czech power group CEZ <>
will delay the planned construction of new units at its Temelin
nuclear power plant amid forecasts for declining electricity
demand in coming years, CEZ officials said on Wednesday.
The utility, also the region's biggest listed company, plans
to build two additional units at its Temelin plant near Austria
as well as up to three other units in neighbouring Slovakia and
at its Dukovany station in the Czech Republic.
CEZ -- central Europe's biggest utility -- was expected this
autumn to ask bidders to submit final offers for the
construction and announce the winner of the tender by the end of
the next year. The completion date was set for 2020.
Some analysts said tight cash flow could be a reason for the
delay and predicted CEZ may seek a partner for the project that
could be worth up to 500 billion Czech crowns ($28.3 billion).
"Nuclear power plants are the cheapest source of energy for
CEZ," Prague-based brokerage Atlantik said in a research note.
"In addition, no emission credits are needed.
"The report of a possible delay is not a good one for
investors and we expect a negative market reaction."
CEZ shares were off nearly 1 percent to 808 crowns in late
morning trading. The Prague bourse's PX Index <> was up
nearly 1 percent.
Czech officials, who said the suppliers had asked for a
delay to better prepare their bids, have painted the Temelin
expansion as something that would help secure the country's
energy security and cement its place as one of Europe's top
electricity exporters.
Local newspaper Hospodarske Noviny quoted an unnamed CEZ
source as saying the delay could be "in the order of years" and
that the utility might sell some assets abroad.
CEZ officials confirmed the delay but declined to give more
details.
CEZ supervisory board member Eduard Janota told Reuters in a
telephone interview there was a delay in the tender for a
supplier of the new units but he declined to give more details,
saying the issue would be debated at a CEZ supervisory board
meeting on Thursday.
"There is already a delay now, because the tender should
have originally happened in autumn and it will not happen, it
will take place in the soonest possible term, which is in
spring," he said.
Toshiba Corp <6502.T> unit Westinghouse, an alliance of
Russia's Atomstroyexport and Czech company Skoda JS, and
France's Areva <CEPFi.PA>, are bidding to build the units.
CEZ spokesman Ladislav Kriz said it has not been decided yet
whether the entire expansion plan at Temelin would be delayed.
He said CEZ was in talks about the timetable with all the
three suppliers, who he said had sought a longer period to
complete bids and for timing of deliveries for the construction.
"Things will be clear within 14 days, one month," Kriz said.
(Writing by Jana Mlcochova and Michael Kahn, editing by
Keiron Henderson)
