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Eesti Energia and GE reach agreement on Auvere power plant
On 16th of August 2021, Enefit Power AS, a wholly owned subsidiary of Eesti Energia AS, signed a compromise agreement with GE Power Estonia AS, GE Power Sp. z.o.o. and GE Steam Power System S.A.S. (hereinafter GE) regarding the availability guarantee of Auvere power plant between July 2018 and August 2020. Parties agreed on a mutually acceptable compromise under which the arbitration proceedings in the Arbitration Institute of the Stockholm Chamber of Commerce were concluded as of 10 September 2021, and GE’s compensation to Enefit Power AS is valued at 30.0 million euros, of which 28.0 million euros was paid out in Q4 2020 under a bank guarantee (disclosed with the 2020 Annual Report).
The remaining sum will be compensated by providing various works and services for the Auvere power plant. The financial impact of the agreement will be accounted in the Q3 2021 financials of Eesti Energia group.