CEZ Group says Albania responsible for all CEZ Shperndarje trials

TIRANA, June 26 – Prague-based CEZ Group which last January had its Albania licence revoked, says it is no longer concerned over CEZ Shperndarje distribution operator, currently under state administration, including complaints filed against it. CEZ Shperndarje is currently facing an international arbitration case with a debt collection company which claims Euro 108 million for the unilateral cancellation of its contract at the time CEZ Shperndarje was managed by the Czechs.
The arbitration dispute which Albanian power distributor CEZ Shperndarje is facing over the termination of a contract on debt collection with company Debt International Advisory (DIA) will not have any influence on Czech power producer CEZ, CEZ spokeswoman Barbora Pulpanova has told Czech News Agency CTK. CEZ has been sued in the Vienna International Arbitral Centre by Debt International Advisory (DIA) which is seeking euro 108 million in damages for the early termination of the contract.
According to the arbitration petition, CEZ Shperndarje signed a contract with DIA in 2010 on the collection of debts from customers who failed to comply with their obligations towards the distributor for more than 90 days.
“Anything that is happening in the Albanian distribution company, including complaints filed against it, no longer concerns CEZ because administration of the company, including all decision making rights, was taken over in January by a local administrator who is now responsible for the company’s operation and all its obligations,” Pulpanova said.
Czech Republic-based CEZ Group, whose Albanian power supply subsidiary CEZ Shperndarje, was stripped of its licence last January, says it has officially initiated international arbitration procedures to claim compensation for the damage incurred in Albania. CEZ says it will claim Euro 200 million in international arbitration while the Albanian government claims that CEZ’s failure to fulfill its contract obligations over imports, investments and reducing grid losses caused the state USD 1 billion in damage.
“The arbitration proceedings have been formally initiated by sending a ‘notice of arbitration.’ However, this does not prevent a potential out-of-court settlement between the parties.”
The CEZ Group entered the Albanian market in May 2009 by acquiring a 76 percent equity stake in the Albanian power distribution company for Euro 102 million.
CEZ blames the situation in Albania on tariff disputes with the Energy Regulatory Entity and heavy fines imposed by local authorities.