Croatia: Arbitration of power utility HEP with Slovenia NPP Krsko over delivered electricity

, SEE Energy News

At the session held last week the Government, inter alia, considered proposed measures related to arbitration procedure HEP against RS, due to undelivered electricity from Nuclear Power Plant Krško in the period July 1, 2002 – April 18, 2003.

The procedure was completed last year with the arbitration award of Arbitration Panel stating that the Republic Slovenia shall pay to HEP EUR 19,987,000, plus interest, that has been calculated as of July 01, 2002 until the date of payment, in the amount of average six-month EURIBOR plus 2 percent. RS shall also cover HEP costs in the amount of USD 10 million with the appropriate interest.

Last December Slovenia paid to HEP USD 10 million and about EUR 32.8 million, and the rest on January 22 this year, i.e. EUR 1,120,472, including the principal and the interest.

Since Slovenian energy companies realized economic benefits from the sale of electricity, on 30 December the Government ordered the Ministry of Economy and Ministry of Infrastructure to propose necessary steps for cash return from the companies that realized economic benefit from the electricity sale generated in the nuclear power plant Krško, during the period covered by the arbitration award.

The ministries initiated the process of collection of necessary data, but since the data are over ten years old, the collection and verification were time consuming. Due to overdue deadlines and different forms of data, it was not possible to precisely define which companies realized economic benefit from electricity sale in the given period.

Therefore it was proposed to compensate for the paid funds by the payment of dividends by energy companies until the end of June, transmits