site.btaENERGO-PRO Files Arbitration Claim against Bulgaria for EUR 54 Mln at ICSID

ENERGO-PRO Files Arbitration Claim against Bulgaria for EUR 54 Mln at ICSID

Sofia, June 8 (BTA) - The International Centre for Settlement of
Investment Disputes of the World Bank (ICSID) has registered an
arbitration claim for 54 million euro filed by Czech-owned
ENERGO-PRO electricity distribution company against Bulgaria,
the company said Monday.

On July 20, 2013, ENERGO-PRO, owner of the electricity
distribution company in Northeastern Bulgaria, proposed to
Bulgaria an amicable agreement over an investment dispute by way
of mutual understanding and negotiations concerning the
proposed new regulation of electricity prices, the resulting
reduction in the operating costs of the electricity distribution
companies, and compensation for the costs of purchasing green
energy imposed by law. The 54 million euro claim was registered
on May 26.

The dispute between the Czech investor and Bulgaria resulted
from the energy regulator's policy of electricity pricing and
compensation for the State's obligation to buy electricity from
renewable sources. The pricing policy pursued by the State
Energy and Water Regulatory Commission (SEWRC) between 2012 and
2014, aimed at reducing the end-consumer prices at the expense
of the revenues of the grid operators and end-suppliers, has
decapitalized and impaired to the utmost the financial position
of the ENERGO-PRO Group of companies.