EVN, NEK Settle Old, Multi-million Dispute

Austrian energy company EVN has reached an out-of-court settlement with the National Electric Company (NEK) on an old dispute dating back to 2012 - 2013.

The amount is unknown but the Austrian group estimates that the funds agreed will raise its net profit for the current quarter by EUR 38 M.

According to data for May 2013, EVN had an unpaid bill by NEK for the purchase of energy for BGN 192 M. The company implemented an offsetting procedure but the state venture disputed the operation.

Now, the agreement is for an offsetting procedure again.

The agreement reduces the risk of Bulgaria being forced to pay a huge sum by the International Centre for the Settlement of Investment Disputes (ICSID) with the World Bank.

EVN's suit is for EUR 600 M and at least a part of it is on the issue already settled with NEK.

Two other energy distribution companies have initiated suits of a similar nature - CEZ and Energo.Pro.