Spain has lost its second international arbitration in the case of the electric reform carried out in years 2013 and 2014. The Stockholm Chamber of Commerce has made an award against the Kingdom of Spain forcing it to pay 53 million euros to a Luxembourg entity. After investing in renewables in our country, this company went through drastic cuts due to the change in the regulatory framework which was applied retroactively.
So far, Spain has lost two international awards due to cuts to renewables, the first in the World Bank Court of International Arbitration, in favor of the British firm Eiser Infrastructure Limited and its Luxembourg subsidiary (Energia Solar Luxembourg), -linked to Isolux- for which it should receive 128 million euros plus interest and this second one recently dictated by the Stockholm Chamber of Commerce.
There are still some thirty arbitrations to be resolved, the National Association of Photovoltaic Energy Producers Anpier recalls in a statement warning that “should all the arbitration awards be lost, the electric system could increase its costs by 7,000 Million. euros. ”
For this Association, the reform that Minister Soria prepared has left in tatters 62,000 Spanish families, who allocated their savings and mortgaged their assets “to support the development of a new energy model in Spain which was then being boosted by the State itself, and they now see this Government indemnify foreign investors, while its nationals, who suffer much greater losses are abandoned”.
Second international arbitration
Therefore, they take this opportunity to once again urge the Government for “a solution to restore the damage caused to the photovoltaic sector.” According to Anpier a number of photovoltaic producers have gone through cuts of up to 50% of the regulated tariff offered by the State, while the banks required full payment of funding, which involved that they had to refinance to avoid losing the personal guarantees offered to banking entities.
For Anpier, the reform prepared by Minister Soria has left in tatters 62,000 Spanish families who allocated their savings and mortgaged their assets to support the development of a new energy model in Spain called for by the State itself.
The Ombudsman already spoke about it after Anpier warned this institution replying: “This Institution considers that by a principle of material equality, Spanish citizens should not be given worse solutions than investors from third countries. (…) Otherwise, the retributive change of photovoltaic energy would only entail a singular sacrifice on a given group (in this case, Spanish investors) that would be impacted in a special way by not having at their disposal the means with which the Energy Charter Treaty empowers foreign investors and, in particular, the recourse to international arbitration. ”
And he added that “there would also be the paradoxical situation that Spanish investors would be disadvantaged comparatively in their access to the relevant compensatory measures” and he requested: “to adopt the necessary measures so that Spanish investors in photovoltaic energy that have seen their compensation cut, do not receive worse treatment than investors from the signatory countries of the Energy Charter Treaty, ” the National Association of Photovoltaic Energy Producers recalls.