RiTE Ugljevik and Slovenian partner sign final deal to end dispute over electricity payments

RiTE Ugljevik, the coalmine and thermal power plant in Bosnia and Herzegovina, and its Slovenian partner Elektrogospodarstvo Slovenije (EGS) have signed a new agreement that resolves all outstanding obligations tied to a years-long dispute. The deal is worth approximately €37 million and represents the final step in settling the debt between the two sides, bringing an end to a complex case that had carried significant financial risk.

Arbitration risk removed

With the new terms in place, both parties have agreed to withdraw from a potential arbitration process in Washington. That step matters because the dispute had the potential to escalate into a claim of nearly €650 million—an outcome that would have prolonged legal uncertainty and increased exposure for both companies.

How the dispute began

The disagreement traces back to earlier rulings requiring RiTE Ugljevik to compensate EGS for electricity that was not delivered over an extended period. The obligations covered missed supply from 2011 through early 2022, along with additional compensation for subsequent years. Under the settlement framework, part of the plant’s ongoing electricity production will continue to be delivered to the Slovenian side.

Interest issue settled and payments underway

While most of the principal debt and compensation had already been addressed through prior arrangements, accrued interest remained unresolved. The final agreement closes that remaining component, including a reduction in the amount originally claimed, allowing both parties to fully conclude the matter.

The payment plan is already in motion, with initial installments being transferred. Electricity deliveries to EGS have also continued since early 2024 under earlier commitments. The agreement’s obligations are secured by the parent utility company, supporting enforcement and stability as both sides move past the dispute.