E.ON beats Spain and wins $1 million fine for renewable energy ‘pufo’

On January 18, 2024, the International Center for Settlement of Investment Disputes (ICSID), the World Bank’s arbitration tribunal issued its twenty-sixth award against Spain for retroactive refund of renewable premiums. This time, The verdict agrees with German multinational E.ON, which had claimed compensation of 324.7 million euros.

Mark A. The court headed by Kantor ruled against E.O.N. issued an award retaining approximately 90% of the amount sought. The process dates back to 2015, when the company initiated a complaint to enforce the Energy Charter Treaty with the legal representation of Luther Rechtsanwaltsgesellschaft.

EON to Spain The amount of compensation that will have to be paid will be revealed soon, but sources close to the case say that the courts have supported practically the entire claim included in the German company’s suit, as they have been able to confirm it. Are capable. Sources consulted by Libre Mercado.

Spain was burdened with more than 1,200 million euros in compensation over the past 25 judgments, to which 250 million should be added in additional costs due to late payment interest, legal costs and expenses on consultants and lawyers. Now the total amount will be around 1.8 billion.

It should be noted that, given that the Spanish government has not yet complied with the sentences and has placed the country as the country that has accumulated the largest amount of outstanding awards, leaving Russia behind and itself Similar to Venezuela, the affected companies have seized various assets. Spain and the United Kingdom are preparing similar actions in the United States.

This case represents another blow to Spain’s reputation in terms of investment and renewable energy, highlighting the lack of compliance with the sentences and causing concern among companies affected by the legal uncertainty in our country.