Czech company CEZ seeks 190 million Euros in compensation from the Albanian government

Czech company CEZ seeks 190 million Euros in compensation from the Albanian government

Tirana, May 16, 2013

The power supply Czech company, CEZ has filed a lawsuit in the International Court of Arbitration against Albania, seeking compensation, after the Albanian government revoked its license, which entitled this company to supply the retail market with power.

In a press release, CEZ states that Albania has failed in protecting the investments of the company.

CEZ has not clarified the amount that it has sought, but Czech media talk about an amount of 190 million Euros.

The company had acquired the monopoly of the distribution of power supply in 2009. The Albanian government used to hold 24% of the shares. After clashes with the Albanian government and the Power Regulatory Authority, CEZ intended to sell the shares that it held at CEZ Albania at the end of last year.

In January 2013, PRA intervened and after several meetings, it revoked CEZ license, blaming it for lack of power supply and water in several parts of the country. On its part, CEZ claimed that it had cut power due to unpaid bills by consumers, but the Albanian government criticized this action when the former attempted to cut power supply to water supply operators, risking water shortages for 1 million people. The government claimed that CEZ attempted to threat national security in the country by taking this action.

CEZ operates in 10 countries, mainly in eastern and central Europe. After being ousted from Albania, CEZ was also ousted from other countries such as Bulgaria. /ibna/