Austrian energy company EVN reached out-of-court settlement with the Bulgarian Electric Company NEK

Agreement on outstanding costs for electricty from renewable sources and interest payments

On February 13 2017 an out-of-court agreement could be reached between EVN Bulgaria and the state-owned Bulgarian electricity company NEK concerning costs for the production of electricity from renewable sources and interest payments that had arosen in the period 1 July 2012 to 31 July 2013. The dispute will be settled by mutually offsetting claims by EVN Bulgaria with claims by NEK against EVN Bulgaria from power deliveries.
The international arbitration proceedings were brought by EVN AG before the „International Centre for the Settlement of Investment Disputes“ (ICSID) against the Republic of Bulgaria.
The net results from the operating business for the financial year 2016/2017 are expected to remain stable. It is expected that the settlement will have an additional positive effect on EVN’s net result in the 2nd quarter in the amount of EUR 38 million.

Source: 14 February 2017 novinite Sofia News Agency, 13 Febraury 2017 EVN News

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