Power distributor EVN AG has has initiated international arbitration proceedings against Bulgaria at the International Centre for Settlement of Investment Disputes (ICSID), which forms part of the World Bank group.

The power distributor reminds in a media statement that it notified Bulgaria in March 2013 of its claims under international investment treaties in connection with breaches of public international law committed by the country.

This dispute arises out of actions by Bulgarian regulatory authorities and government agencies in relation to the pricing of electricity and compensation for public obligations in respect to renewable energy.

"These measures have caused substantial damage to EVN AG and its affiliates. In its notice, and on several occasions since, EVN AG has invited the Bulgarian Government to enter into negotiations in order to achieve an amicable settlement. Yet, these efforts have so far not led to a resolution of this dispute," the power distributor states, adding that it commenced investment treaty arbitration against Bulgaria to defend its interests.

EVN expresses hopes that the matter will be settled amicably in the interests of both parties.

The company does not specify the value of the arbitration claim.