ANNOUNCEMENT 21 Jan 2013In January 2013, the government of Albania announced altered domestic business conditions for foreign investors.
NUMBER OF INTERVENTIONS
UNCTAD, Investment Policy Monitor, No 9, March 2013 (page 3): http://unctad.org/en/PublicationsLibrary/webdiaepcb2013d2_en.pdf
The Prague Post: http://www.praguepost.com/business/15318-cez-launches-legal-action.html
CEZ Group Website: http://www.cez.cz/en/cez-group/media/press-releases/4121.html
On January 21, 2013, the Albanian Energy Regulatory Office (ERE) withdrew the operating licence granted to CEZ Shpërndarje, an energy distributor owned by the Czech company CEZ on a par with 76 per cent (corresponding to EUR 102 million in 2009).
CEZ Shpërndarje recognised that it did not meet the requirements imposed by ERE, but claimed that the Albanian state was responsible for this situation. CEZ Shpërndarje argued that its financial situation was untenable due to frequent fines imposed by the Albanian authorities. Moreover, as of January 1, 2012, ERE imposed 49 per cent higher prices for foreign compared to local investors buying power from the Albanian state-owned company KESH.
The CEZ Group immediately announced that it will call for an international arbitration.