Balgarianovinite.com The European Commission has opened an in-depth investigation to assess whether an arbitration award, in which Bulgaria is ordered to pay compensation to ACF Renewable Energy Limited for changes to a renewable electricity support measure, is in line with EU State aid rules, the Commission said on Wednesday.
In 2011, Bulgaria established a scheme to support the production of electricity from renewable sources. In 2013, 2014 and 2015, Bulgaria changed the scheme. In March 2016, the scheme in place was notified to the Commission, which approved it under EU State aid rules on August 4, 2016, the press release said.
ACF is a company established in Malta. In 2012, ACF invested in Bulgaria’s renewable energy sector by purchasing a solar photovoltaic power plant, that benefitted from the renewable energy support scheme that Bulgaria implemented in 2011. Following the modifications introduced by Bulgaria in 2013 and 2014, ACF continued to receive support under the modified scheme and initiated arbitration proceedings. The company claimed compensation for the support it would have received on the basis of the scheme, had it not been modified.
An arbitral award of January 5, 2024, found that Bulgaria infringed the Energy Charter Treaty (‘ECT’) and ordered Bulgaria to compensate ACF for losses allegedly suffered due to the modifications of the Bulgarian support scheme. The compensation amounts to €61.04 million, plus interest. Bulgaria notified this award to the Commission under State aid rules, but until today has not paid any compensation.
At this stage, the Commission’s preliminary view is that the arbitration award and its implementation would constitute State aid within the meaning of Article 107(1) of the Treaty on the Functioning of the EU (‘TFEU’), which is incompatible with the internal market. The Commission will investigate further the measure and its compatibility with the internal market, and in particular a possible breach of the EU Treaties by the aid measure, the press release said.
It noted that State aid is prohibited unless it is approved by the Commission as compatible with the functioning of the internal market. A measure that breaches other provisions of EU law cannot be declared compatible under State aid rules.
The dispute leading to the arbitration award was an intra-EU dispute. Therefore, the Commission will assess further whether the award and its implementation could be in breach of Article 19(1) of the Treaty on European Union, Articles 267 and 344 TFEU, regarding the ultimate jurisdiction of the Court of Justice of the European Union (‘CJEU’), and the general principles of autonomy of the EU legal order.
The opening of an in-depth investigation gives Bulgaria and interested third parties the opportunity to submit comments. It does not prejudice in any way the outcome of the investigation, the Commission said.
Case-law from the CJEU sets out that Intra-EU investor-State arbitration based on Bilateral Investment Treaties are contrary to EU law.The Commission’s July 2018 Communication on the protection of investments explains that this also applies to the investor-State arbitration clause in the ECT, the press release said.
EC Opens In-Depth Investigation into Arbitration Award Ordering Bulgaria to Pay Compensation to Maltese Renewable Energy Company 2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-01-21 13:44:18 Latest news World news Country news Most important news latest news most important latest of the day Justice Petar Nizamov Feathers Petar Nizamov- Feathers Justice bg iustitia.bg iustitia iusticia usticia investigation Burgas Bulgaria news news of the last hour news of the day news of today Bulgaria news The news from Bulgaria blitz news top news most important most commented latest news Boyko Borisov news weather coronavirus news news weather facebook youtube facebook instagram news today news of the last minutes news today today news news bg news leading news hot news bg news site for news all news news bg news of the last hour latest latest news bg news of today news today news today news of the last hour latest news today news bg news news 24 hours news vesti bg novini news world bird bg bivol bg bivol trud bg novini latest news today novinite bg news hello bulgaria political party coat of arms delyan peevski scandalous Bulgarian National Television Free Europe Television scandal exclusive live tv live right now tv tv online tv program bg live now tv news online tv online live court Burgas court Burgas district court Burgas court Burgas district court Burgas district court Burgas appellate court Burgas prosecutor Burgas prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Prosecutor General Ivan Geshev Prosecutor Geshev Tsatsarov Ministry of Internal Affairs Burgas ODMR Burgas ODPR Burgas police Burgas district police Burgas prosecutor Tsatsarov SGS cases Varna court chairman of the SGS court decisions on civil cases decisions on cases Plovdiv court decision of the court decisions cases Varna court criminal cases district district court decisions work in the court SGS chairman of the SGS judges Sofia court post judges Plovdiv court Plovdiv judges Plovdiv Supreme Court Inspectorate Supreme Court Supreme Judicial Council lawyer lawyer criminal cases lawyer civil cases lawyer marriage cases lawyer administrative criminal law criminal process civil law civil process administrative law constitutional law