Putting an end to a 3-year long court process, 23 September 2010, Hungary has prevailed international arbitration lodged by AES Summit Generation Ltd. and its Hungarian subsidiary AES Tisza Erőmű Kft. (AES Tisza Power Plant Ltd.). The court underlined in the explanation of its – mandatory – ruling that none of the measures taken by the Republic of Hungary violated the regulations of the Energy Charter Treaty. The court found no basis for any of the claims made by AES Summit Generation Ltd. – including a 30 million USD claim for compensation – and dismissed them all.
AES Tisza Erőmű Kft. (AES Tisza Power Plant Ltd.) and its owner, AES Summit Generation Ltd. has started a court case against the Republic of Hungary in 2007 at international arbitration court. According to the plaintiffs, Hungary violated the regulations of the Energy Charter Treaty by introducing the 2006 official price regulation system for power plants, which set the official prices much lower than the amounts set in a 2001 agreement of AES Tisza with MVM Zrt. According to AES this decision of Hungary had a disadvantageous effect on their previous investments.
Ministry of National Development
Communications Department
Budapest, 24 September 2010