Concerns of judicial propriety or public policy affecting enforcement should not influence decision on jurisdiction

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Bulgaria’s theory based on “bundles” of bilateral rights and obligations does not change the outcome

Analogies based on Mox Plant case do not assist, tribunal says

Tribunal sees no agreement to suspend ECT arbitration under VCLT Article 58

VCLT conflict clause cannot apply where the treaty already contains a conflict clause

Bulgaria’s arguments based on applicable law clause create a “logical paradox”

Conflict clause in ECT Article 16 determines that ECT must prevail over EU law

Tribunal finds prima facie jurisdiction under ECT and ICSID Convention

State’s argument on ab initio effect of CJEU rulings is viewed by tribunal as self-defeating

Interest and costs awarded to claimant; state left to bear around 20 million EUR in fees

Tribunal adopts claimant’s damages model, uncontested on the facts by respondent

Alleged composite breaches dismissed

Tribunal elaborates on meaning of non-impairment clause, but dismisses claims by recalling its FET reasoning; umbrella clause claim also dismissed

Permanent grid access fee breached FET as a “significant change” in the legal regime

No breach of other aspects of FET

No breach of legitimate expectations through temporary grid access fee and balancing costs

State breached legitimate expectations in relation to production cap, levy on revenues, and transition to feed-in premium model

No grounds for defences based on allegedly unforeseen boom in solar investment and on EU law

Expectations of claimant’s shareholders can be attributed to claimant; tribunal rejects state’s suggestion that claimant could expect only a “reasonable rate of return”

Risk of regime failure was for Bulgaria to bear; tribunal holds that investors can expect stability even while fearing changes

Claimant could legitimately expect central pillars of renewables regime to remain fixed, even if other aspects changed

Komstroy objection quickly dismissed

Levy on feed-in tariff revenues is not a tax; tribunal sees elements of bad faith in contribution payment reducing feed-in tariff, but ultimately treats it as an exempt tax

Bulgaria raised Article 21 tax carve-out; tribunal endorses characterisation of tax measures on basis of “know-it-when-you-see-it” test

Denial of benefits objection is dismissed, being invoked too late by Bulgaria

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