Sponsored
Article Tools

EVN to Get Support by State Secretary

Published: March 29, 2013; 17:33 · (Vindobona)

State Secretary Lopatka intervened in EVN’s dispute with Bulgarian government. He urges Bulgaria to ensure protection of investments.

EVN to Get Support by State Secretary / Picture: © Flickr / The Austrian Foreign Ministry

The Austrian power company which also operates in Bulgaria is claiming compensation from the Balkan state. According to EVN the flat rate withholding tax for the feed-in of renewable energy were regulated insufficiently. Thus, EVN would suffer from loss in earning in the amount of € 51.13m (more than RON 100m), as stated in an announcement last week. From EVN's viewpoint, the result of this decision is a further violation of Bulgaria's investment protection obligations.

At that time, EVN held out the prospect of trail against Bulgaria for breaking the law of investment promotion and protection. State Secretary of the Exterior Ministry, Reinhard Lopatka, has mediated between EVN and the Bulgarian government during his visit in Bulgaria. Lopatka described EVN as an experienced and responsible enterprise referring to the fact that the power supply company had made investments of more than € 500m to improve the Bulgarian electricity supply. He reminded Bulgaria to secure the protection of investments otherwise Lopatka would see the government putting potential further interests in investments of Austrian companies in Bulgaria at risk. Lopatka is now pressing for a “constructive solution”, as announced by the Exterior Ministry on Friday.

Furthermore, the State Secretary emphasizes that it was in both, Austria’s and Bulgaria’s interest that the Balkan country would soon achieve EU standards in legal protection, the fight against corruption and improved transperency in justice.