Slovenia to pay €40 Million in Damages to Croatia Electra

Perica Jukic, CEO, Croatia ElectraLPJ Issue 162, 21 December 2015

On 17 December, International Centre for Settlement of Investment Disputes (ICISD) from Washington, D.C., issued a decision whereby Slovenia has to pay a debt of nearly €40 million to the state-owned electricity company, Croatian Electra (HEP), for the non-delivery of electricity from the Krsko Nuclear Power Plant (Slovenia).

In 1998, Slovenian state-owned company Elektro-Slovenija (ELES) disconnected the transmission lines from Krsko to Zagreb, following the unilateral decision by the Slovenian government to take over HEP’s 50% founding share. HEP launched the arbitration before the ICISD ten years ago, claiming to have suffered damages, because they were forced to procure more expensive electricity, instead of cheaper electricity from Krsko.

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