“If we cannot reach an amicable settlement, we are prepared to protect our investment even by means of arbitration,” said Tomáš Pleskač, Chief Officer of International Division. Therefore,  after a series of earlier negotiations, which unfortunately did not lead to a remedy, and after use of all available local means, today ČEZ sent a Notice of Dispute, which is the first formal step toward initiating international investment arbitration under the Agreement for the Promotion and Reciprocal Protection of Investments, as made between the Czech Republic and the Republic of Bulgaria, and also according to the Energy Charter Treaty. Both parties now have time to try and resolve the dispute amicably without the need to engage in arbitration.

The CEZ Group entered the Bulgarian market at the end of 2004. Its distribution and sales businesses serve some 3 million customers there, mainly in the western part of Bulgaria. The CEZ Group also owns other assets in Bulgaria, including a black-coal power plant in Varna that temporarily ceased operations in January 2015. The situation in the energy sector of Bulgaria is critical, and the price decisions of the local regulator have long been inconsistent with what could have been expected in view of the course of privatization. Therefore, businesses operating in the energy sector have in recent years faced declining profitability or losses and low liquidity.