Croatia: HEP power utility won 40MEUR arbitration case against Slovenian NPP Krsko electricity case, SEE Energy News
The Republic of Slovenia has to pay the Croatian Elektroprivreda (HEP) more than 40 million euro for the undelivered electric power from the nuclear power plant (NPP) Krško in the period from July 1, 2002 till April 19, 2003, it was decided by the International Centre for Settlement of Investment Disputes from Washington.
“International Centre for Settlement of Investment Disputes – ICSID from Washington ruled on December 17, 2015 that the Republic of Slovenia has to pay HEP more than 40 million euro for the undelivered electric power from the NPP Krško in the period from July 1, 2002 till April 19, 2003, they say in HEP.
The Tribunale ruled that the Republic of Slovenia has to retribute HEP for the loss of nearly 20 million euro, interest rates (half year EURIBOR plus 2%) starting from July 1, 2002 and 10 million US dollars for legal and other expenses that HEP had in the legal process.
„We are satisfied with the final verdict of the International Centre for Settlement of Investment Disputes, especially since the dispute lasted for 10 years. I would like to mention that we have a successful cooperation with our Slovenian partners in NPP Krško and we believe that the said cooperation will continue to mutual satisfaction of both Croatia and Slovenia” said the president of HEP management Perica Jukić.
At the end of July 1998, Slovenian ELES unplugged the power lines from Krško to Zagreb, after the Slovenian Government expropriated HEP through a regulation, by taking its 50 percent founding share. Several years long negotiations followed, which resulted in signing an international contract regarding NPP Krško in the end of 2001, which deleted all mutual debts up to June 30, 2002, while it was agreed that new delivery will start no later than July 1, 2002.
From HEP, they remind us that litigation at ICSID started 10 years ago. On November 4, 2005 HEP requested the initiation of arbitrary procedure against the Republic of Slovenia, claiming that it suffered losses since it had to engage expensive power plants and expensive import instead of the cheaper electric power from Krško.
Since then both parties exchanged a large number of written submissions, and more than 20 witnesses have been interrogated during four hearings in Paris. After the Arbitrary decision that the request from HEP was legally founded, a legal battle was held during past six years regarding the amount of retribution to HEP.
There is no appeal against this arbitrary decision, says the announcement, transmits Serbia-energy.eu