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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

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

9. Thank you for your attention!
Legal Energy Forum