EVN AG informs the Republic of Bulgaria about its intention to commence arbitration proceedings persuant to Investment Treaties

EVN AG informed on 19 March the Republic of Bulgaria about its intention to commence proceedings pursuant to the “Agreement Between the Republic of Austria and the Republic of Bulgaria for the Promotion and Protection of Investments” and the “Contract Regarding the Energy Charter” in order to safeguard its Bulgarian investments in EVN Bulgaria Elektrosnabdiavane EAD and EVN Bulgaria Elektrorazpredelenie EAD. The date of the announcement marks the beginning of the 3 to 6 month consultation and negotiation period under the agreements. During the course of such period, the parties are obliged to enter into negotiations and attempt to amicably resolve the dispute.  
This announcement comes as the result of various actions taken by the regulatory authorities and other state agencies of the Republic of Bulgariacompromising the EVN companies. These actions reduce the proceeds from the sale of electric energy. Moreover, by not acknowledging actual financing costs, the payment of feed-in compensation to which producers of renewable energy are entitled is reduced. Finally, today’s announcement is in response to the repeal of a special levy for network access of renewable energy production installations by the recent decision of the Bulgarian administrative court in March 2013. From EVN AG’s perspective, the result of this decision represents a further violation of Bulgaria’s investment protection obligations.

energjia.al, 21.03.2013