The Society of Energy Shareholding Management (SAPE), a company controlled by the Department of Energy, will ask the International Court of Arbitration in Paris that Enel pay over 520 million euros in the case regarding the privatization of Electrica Muntenia Sud, says a press release.

Currently, Electrica owns in the former subsidiary Electrica Muntenia Sud a package of 23.57%, of which 10% is a package for transfer to employees, which means that Enel has the obligation to buy 13.57%.

“The cabinet members were informed that the Romanian state, through SAPE, will require Enel a payment of 521.583 million euros, citing the “Put” Option, just as has already been established by Government Decision 1163/27.11.2012. According to the provisions in the privatization contract, signed in July 2007, Electrica has the right to sell and Enel has the obligation to buy a part or the whole package of 23.57% stake in the former Electrica Muntenia Sud (the right of “Put” option)”, the statement said.

“We have informed the government that we decided not to extend the Memorandum of Understanding signed with Enel on July 7, 2013 and it will expire on July 31, 2014. Consequently, SAPE will open against Enel an arbitration procedure at the International Court of arbitration of the International Chamber of Commerce in Paris”, said minister of energy Răzvan Nicolescu in the release.

Enel took over 50% of Electrica Muntenia Sud in 2008 for about 395 million euros paid directly to the state, and undertook a capital increase of 425 million euros, reaching a 64.4% stake. The price has been adjusted up by 38 million euros, and the amount paid to the State came to around 433 million euros.

Through privatization contract, Electrica may oblige Enel to buy the remaining shares in Electrica Muntenia Sud at a price at least equal to the one in the privatization. SAPE was created by extraction from Electrica SA and comprises the minority shareholdings in Electrica, Enel Energie Muntenia, Enel Distribuţie Muntenia, Enel Distribuţie Banat, Enel Distribuţie Dobrogea, Enel Energie, E.ON Moldova Distribuţie, E.ON Energie România, Electrica Soluziona, Romanian Commodities Exchange and Hidro Tarniţa.

Also, SAPE took over Electrica’s rights and obligations derived from privatizations contracts at Electrica Muntenia Sud, Electrica Moldova, Electrica Dobrogea, Electrica Banat şi Electrica Oltenia.

Electrica SA has at the Court of Arbitration in Paris three actions concerning obligations asumed in privatization contracts and violated by Enel, E.ON and CEZ; in Enel’s case, the claims are for 834.21 million euros, and 378, 6 million lei in penalties. In CEZ file, requests amount to 13.26 million euros, plus damages and interest in respect of 150.73 million lei, while in E.ON case claims are 37.96 million euros, plus dividends and interest of 74.28 million lei for the years 2004-2005, writes Mediafax.

In Slovakia, where Enel has the largest energy producer in the country, police began raides at the headquarters in Bratislava and two other cities to collect documents about privatization of Slovenske Elektrane to the Italian utility company.