State of Guatemala vs Teco Energy Litigation

A recent ruling by an international tribunal in a dispute between Guatemala and Iberdrola, sets a precedent against the claims of Teco Energy.

Thursday, August 23, 2012

The U.S. Corporation Teco Energy, a former shareholder of Empresa Eléctrica de Guatemala (EEGSA), sued Guatemala before the International Centre for Settlement of Investment Disputes (ICSID), in 2010, claiming economic losses caused by a reduction in the Value Added Distribution implemented by the National Energy Commission in 2008.

The same argument was presented by the Spanish company Iberdrola, who recently lost the lawsuit and must pay $5.2 million in expenses.

The Attorney General's Office (PGN), Larry Robles, "noted that the previous ruling set a precedent and was taken into account in the final decision of the other claims", reported Siglo21.com.gt.



More on this topic

Arbitration with Teco Energy: Embargo on Guatemala

November 2020

After receiving a ruling opposing the international arbitration disputed with Teco Energy, the New York State Supreme Court ordered the seizure of $15.75 million from Guatemala.

Teco Energy is a company that was a shareholder of Empresa Eléctrica de Guatemala and years ago claimed international arbitration, arguing that from 2008 to 2013 the National Energy Commission set a maximum amount that energy distribution companies could charge the user. This measure caused losses to the distributor.

Lawsuit Between Teco and Guatemala To Be Resolved in 2014

November 2013

For the first quarter of 2014 the Center for International Investment Arbitration could issue a ruling on the suit brought against the Guatemalan State.

This was explained by Silvia Alvarado, director of the National Energy Commission (CNEE).

The company "in 2010 went to the International Centre for Arbitration Relating to Investment Disputes (ICSID) claiming that the State gave an unfair and inequitable treatment by setting the Value Added Distribution (VAD) in 2009 at an amount less than requested by the Empresa Eléctrica de Guatemala S.A. (EEGSA), of which Teco at that time was a shareholder along with the Spanish Iberdrola " reported Elperiodico.com.gt.

State of Guatemala Wins Arbitration Against Iberdrola

August 2012

The International Centre for Settlement of Investment Disputes (ICSID) of the World Bank, has ruled against the claim of the Spanish company Iberdrola against the State of Guatemala.

The lawsuit filed by Iberdrola, a major shareholder and operator of the Empresa Electrica de Guatemala (EEGSA), in late 2009, was due to a disagreement on the rate of Value Added Distribution (VAD), in force since August 2008.

TECO Energy Sues Guatemala

November 2010

The U.S. Corporation, a former shareholder of Empresa Eléctrica de Guatemala (EEGSA), sued the country before the ICSID in Washington.

The process is similar in its content to the one initiated by Spanish company Iberdrola (also a former shareholder of EEGSA) in December 2009, before the same institution, the International Center for Settlement of Investment Disputes (ICSID).

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