Ongoing disputes

  • Dispute 2/2018: Ukraine

    Dispute 2/2018: Ukraine

    Parties involved JSC Uktransgaz and the Ukrainian National Energy and Utilities Regulatory Commission
    Areas of work Gas
    Short description

    JSC Uktransgaz (the Ukrainian gas TSO) asked, and the Ukrainian National Energy and Utilities Regulatory Commission agreed, for the Energy Community Dispute Resolution Centre to facilitate their negotiations over implementation of the amendments to the Ukrainian Gas Transmission Code which are supposed to enter into the force by 1 August 2018

    Updates
    • 28 May 2019: The mediation proceedings re-commence, as Ukrtransgaz disagrees on recent amendments of the financial guarantees provisions in the Transmission Code.
    • 20 April 2019: The Amendments to the Transmission Code, related to allocation agreements and balancing groups, as agreed in February 2019, entered into the force.
    • 18 March 2019: The mediation proceedings are suspended, as the parties and the mediator found solutions to six out of the seven issues at the core of the dispute (Financial guarantees, Trade notifications, Transport service termination, Capacity allocation agreement, Balancing groups and Balancing neutrality)
    • 1 March 2019: The Amendments to the Transmission Code, as agreed between the Parties and approved by NEURC on 25 September 2018, after several postponements, finally entered into force. In practical terms, it means the start of daily balancing (a crucial activity for further gas market development)
    • 25 February 2019: As of today, negotiations are also closed for the following issues:
      (i) Capacity allocation agreement,
      (ii) Balancing groups and
      (iii) Balancing neutrality. 
      The agreed solutions were incorporated into the Amendments to the Code of gas transmission system, the Amendments to the Natural gas supply rules and the Amendments to Standard transmission agreement (as published by NEURC on 8 February 2019). It is expected that those Amendments will be approved after the closing of public hearing on 11 March 2019.
      One remaining issue, the unauthorized off take of gas, is recognized by both parties as the most problematic, however it mostly relates to issues and activities outside the scope of the Code of gas transmission system.
    • 6 December 2018: During the fifth meeting in Kyiv, Ukrtansgaz and NEURC found solutions regarding the capacity allocation agreement, the balancing groups and the neutrality charges. The Parties also agreed on a calendar for the implementation of the solutions. At the same time, negotiations will continue on the open issues.

    • 17 October 2018: At the fourth meeting in Kyiv, Ukrtansgaz and NEURC confirmed an agreement related to
      (i) the capacity allocation agreement and
      (ii) the balancing groups.
      The relevant wording will be fine-tuned and translated into new Amendments to the Ukrainian Gas Transmission Code within the next month. In spite of this progress, one issue still remains subject to dispute and requires further discussions within the mediation process.

    • 25 September 2018: The mediation between Ukrtansgaz and NEURC at the Energy Community’s Dispute Resolution and Negotiation Centre, after 3 meetings, brings the first results: new Amendments to the Code of Gas Transmission System were approved by NEURC. The amendments include provisions on financial guaranties, trade notifications and transmission contract termination, which were subject of dispute between Ukrtransgaz and NEURC. The proposed solutions bring clarity, describe relevant terms in sufficient details and are compliant with European legislation and the Third Energy Package. The parties will reconvene in October, as several issues are still pending.
    • 5 September 2018: The third meeting in the mediation process between Ukrtransgaz and NEURC on the development of the Gas Transmission Code took place on 5 September 2018.  Significant progress has been achieved, and at the end, the parties expressed their satisfaction with the mediation process. Only a few open issues remained, and they will be discussed on 26 September 2018.
    • 25 July 2018: The second meeting in the mediation process between Ukrtransgaz and NEURC on the development of the Gas Transmission Code took place at the Energy Community Secretariat premises in Kyiv on 25 July 2018.  The next meeting, foreseen to be a concluding one, will be organised in the beginning of September.
    • 11 July 2018: The first meeting in the mediation process between Ukrtransgaz and NEURC on the development of the Gas Transmission Code took place at the Energy Community Secretariat premises in Kyiv on 11 July 2018.  The next meeting will be organised in the next two weeks.
  • Dispute 3/2018 Albania

    Dispute 3/2018 Albania

    Parties involved

    The Ministry of Infrastructure and Energy of Albania and the privately-owned Energji Ashta hydro power plant

    Areas of work

    Electricity

    Short description

    The dispute relates to balancing issues that arose between KESH (the largest electricity producer in Albania) and HPP Energji Ashta. Other Albanian state-owned stakeholders include: ERE (the energy regulator in Albania), OSHEE (the Albanian distribution system operator) and OST (the Albanian transmission system operator).

    Updates

     

    • mid-September 2018: First bilateral meetings with the parties and stakeholders take place.
    • 11 September 2018: Dirk Buschle is appointed as Mediator, with the support of Arben Kllokoqi and Rozeta Karova
    • 20 July 2018: Letter from representatives of HPP Energji Ashta consenting to mediation
    • 13 July 2018: Letter from Albanian Minister Damian Gjiknuri consenting to mediation
    • 6 February 2018: The Chair of the Energy Community Secretariat’s Dispute Resolution and Negotiation Centre approaches the parties and proposes that they resort to mediation
  • Dispute 6/2017: Albania

    Dispute 6/2017: Albania

    Parties involved Albania
    Areas of work Electricity
    Short description

    The Energy Community Secretariat is involved in negotiation process between two market participants in Albania aiming at finding a feasible and long-lasting solution to a dispute brought to Secretariat’s attention earlier this year.

  • Dispute 1/2019 Bosnia and Herzegovina

    Dispute 1/2019 Bosnia and Herzegovina

    Parties involved

    The Energy Community Secretariat and the Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina

    Areas of work State Aid
    Short description

    The mediation commenced at the initiative of the authorities of Bosnia and Herzegovina, which requested the Secretariat to engage in mediation in Case ECS-10/18.  In Case ECS-10/18, a public guarantee granted by the Federation of Bosnia and Herzegovina in favour of the Export-Import Bank of China for a loan by the latter to the public utility Elektroprivreda BiH d.d. Sarajevo for the Tuzla 7 project was found by the State Aid Council of Bosnia and Herzegovina not to contain elements of State aid. However, the Secretariat preliminarily concluded that the State Aid Council’s decision does not comply with the State aid acquis and that the public guarantee does constitute State aid. The mediation will be carried out under Title III of Procedural Act 2016/3/ECS on the establishment of a Dispute Resolution and Negotiation Centre.

    Updates 26 June 2019: the parties appointed Mr Herman Verbist, a mediator from the Energy Community Panel of Mediators.
  • Dispute 4/2018: Bosnia and Herzegovina

    Dispute 4/2018 Bosnia and Herzegovina

    Parties involved

    The Energy Community Secretariat and the Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina

    Areas of work

    Environment

    Short description

    The mediation commenced at the initiative of the authorities of Bosnia and Herzegovina, which requested the Secretariat to engage in mediation in Case ECS-1/15.  The subject of case ECS-1/15 is  the environmental impact assessment procedure of the planned thermal power plant Ugljevik 3 in the Republika Srpska entity of Bosnia and Herzegovina, which, in the view of the Secretariat, was not carried out in compliance with the Energy Community acquis communautiare on environment. The mediation will be carried out under Title III of Procedural Act 2016/3/ECS on the establishment of a Dispute Resolution and Negotiation Centre.

    Updates
    • 27 November 2018: the Parties sign a settlement agreement, read more.
    • 19 November 2018: a mediation session between the Parties and the Mediator took place in Vienna
    • 31 October 2018: the parties appointed Ms Miryan Weichselbaum – Gharibo, a mediator from the Energy Community Panel of Mediators.