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Austrian utility EVN said on Tuesday it has informed Bulgaria that it intends to launch arbitration proceedings in order to safeguard its investments in the country, SeeNews reported.
The announcement comes as a result of various actions taken by the Bulgarian regulatory authorities and other state agencies in the country compromising EVN and its businesses, the company said in a statement on its website.
Bulgaria's government resigned in February as protests over grew over austerity and high electricity bills from the foreign utilities. Parliament pushed through a plan to cut electricity prices and the regulator said it would remove the foreign utilities' operating licenses as it attempted to defuse public anger.
EVN accused the regulator tat its actions are reducing the company's proceeds from the sale of electricity. "Moreover, by not acknowledging actual financing costs, the payment of feed-in compensation to which producers of renewable energy are entitled is reduced," the company said.
EVN added that the announcement is in response to the repeal of a special levy for network access of renewable energy production installations by the recent decision of the Bulgarian administrative court in March. "From EVN AG's perspective, the result of this decision represents a further violation of Bulgaria's investment protection obligations."
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