Bulgaria will not Pay EUR 500 Million to EVN

The arbitration case brought by EVN against Bulgaria at the International Center for Settlement of Investment Disputes (ICSID) at the World Bank in Washington is over, writes Capital.

The decision has not yet been published, but the Austrian firm has announced that it will not be paid the damages sought, which, according to unofficial information, was about 500 million euros.

"The company receives legal certainty and is perceived as a long-term investor on the Bulgarian market," says a EVN statement, quoted by the publication. It states that both parties must bear their own costs as proof that their claims are settled. EVN costs are estimated at around EUR 1 million.

In principle, the Austrians still have the opportunity to challenge the arbitration award within the next 120 days, but only "for very limited reasons". Lawyers are now examining the verdict and assessing what the next steps are. "When the decision is adopted by both sides, it will provide security for future decisions of Bulgaria's energy regulator, which gives us better planning," says EVN spokesman Stefan Zah.

Arbitration against Bulgaria was filed in the International Center for Settlement of Investment Disputes in Washington DC in 2013 for unrecovered expenses on the purchase of energy from renewable sources.

The other two electricity distribution companies also lead arbitration proceedings against the country filed in 2015 by Energo-pro and in 2016 by CEZ. The claim of Energo-pro is for 54 million euros, and for CEZ - about 600 million euros.