Polish Supreme Court declared Energa’s effort to terminate contract legally invalid; Energa Refusing to Comply with Polish Supreme Court Decision
WARSAW (August 31, 2017) – Invenergy, a globally recognized American energy company, announced today that it has, through an affiliated company, filed a claim against Energa-Obrót S.A., part of the Energa Group, which is one of four state-controlled major energy companies. The claim requests PLN 32 million in compensation from Energa, which has refused to fulfill its obligation under a Supreme Court decision in Invenergy’s favor.
In early 2013, Energa terminated a long-term contract for the sale of green certificates with an Invenergy wind farm company. Invenergy pursued its rights in court against Energa to overturn the contract termination. In September 2016, the Polish Supreme Court ruled in Invenergy’s favor, finding Energa lacked the right to unilaterally terminate the agreement “without an important reason justifying this in the light of the interests of both parties.” This ruling was later followed by a final and binding decision of the Appeals Court in Gdańsk, which unequivocally found termination of the agreement for the sale of green certificates had no legal effect.
In direct defiance, Energa has refused to respect its contractual, and now Court-ordered, obligations. Energa’s unlawful effort to terminate a long-term contract and subsequent refusal to comply with court rulings are similar to actions by state-controlled utility Tauron, which currently has four similar actions pending against it by Invenergy.
“In the face of yet another government-controlled entity flagrantly ignoring the rule of law and the sanctity of contracts, potential investors should seriously question whether Poland is a safe place to put their money. The decision by a Polish state-controlled firm to ignore a final decision by Poland’s highest court underscores the unstable investment environment in Poland today” said Invenergy’s Chief Legal Officer Michael Blazer.
About InvenergyInvenergy drives innovation in energy. Invenergy and its affiliated companies develop, own, and operate large-scale renewable and other clean energy generation and storage facilities in the Americas, Europe and Asia. Invenergy's home office is located in Chicago and it has regional offices in the United States, Canada, Mexico, Japan and Europe.
Invenergy and its affiliated companies have developed 105 projects totaling more than 15,900 megawatts that are in operation, construction or contracted, including wind, solar, natural gas-fueled power generation and energy storage projects. For more information, please visit www.invenergyllc.com.