Vattenfall secures EUR 1.6 billion settlement
In 2012, Vattenfall AB and a number of its subsidiaries incorporated in Germany initiated arbitration against Germany pursuant to the Energy Charter Treaty (ECT), a multilateral investment protection treaty. Vattenfall claimed compensation for losses incurred due to Germany’s decision in 2011 to prematurely phase out nuclear power production in Germany. The decision resulted in early shutdown dates for nuclear power plants co‑owned by Vattenfall. The decision was also challenged before the German Federal Constitutional Court.
In March 2021, a settlement was reached, implementing two decisions by the Constitutional Court. The settlement includes compensation to Vattenfall in a sum of appr. EUR 1.6 billion, of which appr. EUR 1.4 billion in the form of a direct payment from Germany. The principal terms of the settlement were enacted as an amendment to the German Atomic Law as of 31 October 2021. Thereafter, the ECT proceedings have been discontinued and Vattenfall has received payment from Germany in accordance with the settlement.
Vattenfall was represented by Mannheimer Swartling and Luther (ECT proceedings) as well as Redeker Sellner Dahs (German courts).