E.ON Receives Arbitration Decision in Dispute With Electrabel
December 29 2017 - 7:05AM
Dow Jones News
By Sonia Amaral Rohter
E.ON SE (EOAN.XE) said late Thursday that an international court
of arbitration had decided "almost entirely" in its favor in a
long-running dispute with Electrabel SA, a Belgian subsidiary of
Engie SA (ENGI.FR), regarding payment obligations related to a 2009
mutual-electricity supply agreement.
The arbitration court ruled that PreussenElektra GmbH, a
subsidiary of E.ON, wasn't obliged to pay the Belgian nuclear tax
to the amount of 321 million euros ($383 million), E.ON said.
The ruling will have a positive impact on consolidated net
income, cashflow and economic net debt, the German utility company
said, while earnings before interest and taxes, and adjusted net
income will be largely unaffected.
Engie couldn't immediately be reached for comment.
In a regulatory filing from July, Engie said that E.ON, via
PreussenElektra, had submitted an arbitration request to the ICC
International Court of Arbitration in November 2014.
It said in the filing that E.ON was seeking the payment by
Electrabel of a portion of the German nuclear contribution as well
as the repayment of EUR199 million, plus interest, of the Belgian
nuclear contribution made by E.ON.
Engie also said in September that Electrabel disputed these
claims and had filed counterclaims, including the full payment of
EUR120 million plus interest invoiced by Electrabel for the Belgian
nuclear contribution, as well as repayment of EUR189 million plus
interest for the German nuclear tax paid by Electrabel.
Engie also said in July that following a ruling by the German
Federal Constitutional Court that the German nuclear tax was
illegal, the court of arbitration had re-opened the case and that
an award was expected to be handed down in the second half of
2017.
Write to Sonia Amaral Rohter at
sonia.amaralrohter@dowjones.com
(END) Dow Jones Newswires
December 29, 2017 07:50 ET (12:50 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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