General Electric pays Eesti Energia €30 million compensation
Estonia's state-owned Estonian energy group Eesti Energia AS will receive €30 million in compensation after signing a compromise agreement with GE Power Estonia AS.
The penalties arise from the availability guarantee of the Auvere power plant for the period between July 2018 and August 2020.
The parties agreed on a compromise on September 10. GE paid €28 million of the compensation in the final quarter of 2020 under a bank guarantee, as disclosed in the 2020 annual report.
The remaining money will be compensated by providing various works and services for the Auvere power plant.
GE, which built the Auvere plant, has previously paid penalties to Eesti Energia. The company reportedly paid €106 million in penalties to Eesti Energia for delaying the handover of the power plant, against the loss of revenue due to the plant's failure to operate at full capacity on time.
The plant cost a total of €610 million to build and was first connected to the grid in May 2015.
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Editor: Helen Wright
