The World Bank’s International Center for Settlement of Investment Disputes (ICSID) decided to throw out a claim by AES Summit Generation against Hungary. It charged that Hungary had violated the Energy Charta Treaty by imposing regulated prices in 2006. Regulated energy prices approved by Hungary in 2006 were significantly lower than those agreed upon in 2001, so AES lost profits on investments it made in power plants acquired as part of a state asset privatization. Last year AES closed all of its power plants in Hungary last year. Following the verdict, the company will now have to cover Hungary’s legal fees.
