New formats of dispute resolution within the Energy Community

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Presentation transcript:

New formats of dispute resolution within the Energy Community Legal Energy Forum Kiev, 30 November 2016 Legal Energy Forum

The Energy Community Extends the EU internal energy market to South East Europe, the Black Sea region and beyond Provides a stable investment environment based on the rule of law Creates an integrated pan-European market Contributes to security of supply in wider Europe Enforcement and settlement of disputes Legal Energy Forum

Dispute Settlement in the Energy Community A dispute settlement procedure which resembles EU’s infringement procedure Dispute settlement rules revised by the Ministerial Council in October 2015 The rules provide for a three-step procedure Opening Letter Reasoned Opinion Reasoned Request The Contracting Party has ample opportunities to be heard throughout the procedure BUT no possibility to resolve disputes between private parties Legal Energy Forum

The Missing Link Dispute settlement framework: what is available for aggrieved parties in energy disputes? European Charter Treaty ICSID Convention Ad-hoc investment arbitration, etc Investment arbitration has its shortcomings Proceedings take years Very costly for both claimants and responding states Available for a select club of big companies Business relation is usually terminated Legal Energy Forum

The Dispute Resolution and Negotiation Centre Even before the Centre was established, ECS has been successfully settling disputes: CEZ v Albania EVN v Macedonia Gas Natural Fenosa v Moldova Legal Energy Forum

The Dispute Resolution and Negotiation Centre Established in October 2016, already operational Three pillars: mediation of investor-state disputes negotiation support to national authorities in their negotiations with private parties facilitation of the swift closure of dispute settlement cases under the Energy Community Treaty via tailor-made negotiation and mediation facilities.  Legal Energy Forum

The Dispute Resolution and Negotiation Centre Very low (if at all) costs In-house expertize (legal, technical and economical) Panel of internationally reputed mediators Flexible approach, but respect for the rule of law Fair and transparent process Emphasis on preserving the business relationship mitigating the costs and damages of disputes stability of the energy markets Legal Energy Forum

A Dispute Resolution and Negotiation Centre in the heart of Europe Am Hof, Level 5 1010 Vienna Austria Legal Energy Forum

Thank you for your attention! www.energy-community.org Legal Energy Forum