Thursday , January 21 2021

The Swiss electricity company lost an arbitration case against Romania



The International Center for the Resolution of Investment Disputes (ICSID) has decided against Alpiq AG in international arbitration to protect investment between the Swiss company Alpiq and the Romanian state. The Swiss are thinking of bringing an action for annulment to the ICSID General Secretariat.

The trial concerned supply contracts between Romanian state-owned Hidroelectrica, a Romanian energy company, which was declared bankrupt in 2012 and its two Alpiq subsidiaries in Romania.

Hidroelectrica surprisingly surprised long-term energy supply contracts with its two Alpiq subsidiaries in Romania in 2012 after Hidroelectrica had filed for bankruptcy, the energy company said. Alpiq seized all available topical treatments, but eventually declined.

In November 2014, Alpiq initiated an international arbitration award concerning the two terminated energy contracts in Romania. The lawsuit was based on the Swiss-Romanian investment protection agreement and the Multilateral Energy Charter Treaty (ECT). According to her statements, Alpiq complained particularly about the expropriation suffered as a result of the abusive settlement of supply contracts.

The arbitral tribunal has decided that the costs of the proceedings must be paid by the parties in half and that each party is to bear its own costs. The ICSID decision does not lead to Alpiq being redeemed.

In addition, the assets relating to the terminated contracts had already been recorded at zero in the financial year 2012. According to previous information, Alpiq's depreciation was 87 million Swiss francs.


Source link