EDP’s determination to cause as much disruption to Portugal’s government as possible, continues with the privatised energy supplier’s overseas shareholders suing the State in international arbitration tribunals.*
At issue is each shareholder's proportion of the €285 million cut in the amount awarded by the State under the complex contractual equilibrium payments (CMEC) system.
Under investment protection treaties, each foreign investor who considers himself out of pocket, can file a case and seek compensation for damages caused to his investment
Each of EDP's foreign shareholders, that has a seat on the general and supervisory board, has agreed to file a lawsuit against the Portuguese State at a locally based international arbitration tribunal.
There are four international investors represented on the board, among these are three companies that are owned by foreign states – the largest of which is China through its China Three Gorges company.
Another foreign state is Abu Dhabi, which controls 4% of EDP, then there is the People's Democratic Republic of Algeria through the government owned company, Sonatrach.
Other qualifying shareholders include the private Spanish company owned by the Masaveu Foundation, and Liberbank from Madrid.
In June this year, the energy expert Pedro Sampaio Nunes, told a government committee of inquiry into EDP’s vast taxpayer subsidies that the company should return €3 billion that is has received from its unwitting customers under the contractual equilibrium scheme since 2007.
Pedro Sampaio Nunes said it was "a scandal" that EDP, "with phenomenal profits, receives State aid by raising tariffs to consumers."
"Each year, EDP has presented a profit in the order of €1,000 million, about one third of this was from CMEC payments," claimed Nunes.
Therefore, continued the expert, "EDP should pay back €3 billion," this being the amount received by the electric company led by its millionaire manager, António Mexia.
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* The International Court of Arbitration is an institution for the resolution of international commercial disputes. The International Court of Arbitration is part of the International Chamber of Commerce. The court comprises more than 100 members from about 90 countries. ICC headquarters is in Paris, France.
