PHOENIX (PHO): Photon Energy comments on the signing of a Constitutional Complaint against the 26% revenue tax on PV plants - raport 16

According to the latest available information 20 Czech senators (with a minimum of 17 required) signed a Constitutional Complaint against the amendment of the renewable energy law 180/2005 which inter alia introduced a 26% tax on the revenues generated by photovoltaic power plants connected in 2009 and 2010 for the years 2011-13. The submission to the Consitutional Court has not yet been confirmed but is expected in due course.

The 20 senators are from all parties represented in the Senate with the strongest support coming from senators of the opposition Social Democrats. The sponsoring senator Jiří Čunek cited the threat of a wave of arbitrations by international investors in PV plants in the Czech Republic under bilateral investment protection treaties (BIT) as the reason for his support for the initiative. An opinion prepared by experts of Czech constitutional law at Charles University Prague came to the conclusion that the measures introduced by the Amendment are unconstitutional in at least three points. Once submitted the Constitutional Court of the Czech Republic could rule the Amendment to be unconstitutional in part or in whole and thus repeal the legislation. A ruling could be obtained within several months.

Along all investors in Czech PV plants Photon Energy views this development as very positive as the Senate, which passed no vote on the law in December 2010, is developing doubts about the merits of this discriminatory legislation.

While a repealing of the legislation would be most welcome, enormous damage has already been caused to many investors in the form of dramatically worsened financing terms, lost revenues, legal costs and in extreme cases lost investments into projects which have not been finished as a direct result of this law. The damage to the reputation of the Czech Republic will continue to compound. The fact that the Czech Republic is worldwide the country with the third-largest number of ongoing arbitrations initiated by international investors under BITs, may not come as a surprise in this context.

Legal basis: § 3 ust.2 point no.2 of the Appendix 3 to Resolution No. 733/2009 of the Warsaw Stock Exchange Management Board dated 18 December 2009 "Current and Periodical Information in the Alternative Trading System"

Osoby reprezentujące spółkę:
Michal Gärtner - Chairman of the Board of Directors
Georg Hotar - Vice-chairman of the Board of Directors