Award rendered in the arbitration proceedings between two European energy giants in Vienna. Amount in dispute: EUR 250 million

Dispute Resolution / Litigation & Arbitration

"The industry has followed the arbitration proceedings between two European energy giants with great interest. We have now been able to obtain an arbitral award for our client PGE in Vienna that got much international attention", this is how Dr. Nikolaus Pitkowitz, expert in arbitration and partner of the law firm Graf & Pitkowitz, describes the recent decision in the proceedings between the Swiss energy group ALPIQ Ltd. and the Polish energy giant PGE Polska Grupa Energetycza, S.A.

In the arbitration proceedings between ALPIQ and PGE the Vienna International Arbitral Centre (VIAC) allowed PGE´s claim to a great extent. The total amount in dispute in these proceedings, which had been initiated already in 2008, amounted to more than EUR 250 million.

The crucial issue of the proceedings was whether discontinuance of supply on the part of PGE as a consequence of energy liberalisation in the EU was justified. ALPIQ had asserted substantial claims on that ground vis-à-vis PGE. The proceedings were characterised by extremely complex legal and factual issues. Long briefs were exchanged and expert opinions submitted. During the arbitration hearing in Vienna, that lasted one week, the complex issues of European law and competition law as well as technical aspects of cross-border electricity supply, calculation of damages and the claim of force majeure were discussed.


Nikolaus

Dr. Nikolaus Pitkowitz

M.B.L.-HSG Partner
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