Our International Dispute Resolution team secured a major victory on behalf of Kosovo Energy Corporation J.S.C (KEK), the largest energy company in Kosovo.
Our team, comprised of lawyers from our New York and Prague offices, provided powerful start-to-finish advocacy for Kosovo in this ad hoc arbitration conducted under the 2021 UNCITRAL Arbitration Rules and administered by the Swiss Arbitration Centre. KEK claimed interest on late payments for electricity delivered to Kosovo Company for Distribution and Supply of Electricity J.S.C, and Kosovo Electricity Supply Company J.S.C. SH.A, two Kosovar companies owned by Turkish investors that are responsible for distribution and supply of electricity in Kosovo (Respondents).
In the arbitration, Respondents did not dispute the amount of electricity supplied by KEK or the calculation of interest to be paid on late payments for electricity supplied by KEK. Respondents, however, argued that they should not be obliged to pay the interest on late payments because the late payments for electricity allegedly occurred as a result of force majeure, specifically a decrease in collections of payments for electricity during the COVID-19 pandemic, and Kosovo’s conduct during the COVID-19 pandemic, which allegedly contributed to a decrease in collection rates.
The Tribunal rejected Respondents’ force majeure defense and awarded KEK approximately 94% of the amount claimed. In addition, the Tribunal also awarded KEK the vast majority of all its costs.