Litgrid and Enersense defend for 12 million More expensive work is done by arbitrator

LAT ruled on March 28 that the arbitral tribunal has the competence to examine defenses when contracts are concluded instead of purchase. The LAT upheld the decision of the Lithuanian Court of Appeal in November 2023, by which it upheld the partial decision made by the arbitrator in July 2023. The latter rejected Litgrid’s request to admit that the arbitrator does not have such competence.

The judicial panel has no reason to disagree with the conclusion of the appealed ruling that the calculation (recalculation) of the contract price according to the pricing rules established in this contract can be qualified as the performance of the contract and not the change of the terms (price) of the contract, LAT decided.

Litgrid told the court that defenses due to the change in the purchase agreement cannot be examined by arbitrators.

The claim can be qualified as arising not from the fundamental change of the terms of the public procurement contract, but from the performance of the contract, only if the specific terms of the change of the contract were determined in advance in the procurement documents, and not in later documents signed during the execution of the contract. Litgrid.

The necessary requirements in the arbitration case, although they are formulated as requirements for changing the price and terms of the contract agreement, according to their factual basis, they are essentially requirements for the recalculation of the price and the understanding of the terms in accordance with the conditions established in the contract and the agreements replacing them, LAT decided.

[{“title”:”Sustabdius LitPol Link elektros kaina neturt augti”,”url”:”https://vz.lt/pramone/energetika/2024/03/26/sustabdzius-litpol-link-elektros-kaina-neturetu-augti”,”category”:”ARTICLE”,”profiles”:[1067,1633,1639,1670]},{“title”:”Litgrid reserved 3.4 GW of power for solar, wind power plants and storage events in 3 months”,”url”:”https://vz.lt/pramone/energetika/2024/03/22/ litgrid-in-3-months-reserved-34-gw-of-solar-power-for-lawn-electric-and-storage-devices”,”category”:”ARTICLE”,”profiles”:[1067,1633,1639,1670]},{“title”:”Litgrid is testing a new system that will allow faster restoration of replaced power lines”,”url”:”https://vz.lt/pramone/energetika/2024/03/21/litgrid-isbando-nauja -system-that-will-allow-to-restore-a-damaged-power-line-faster”,”category”:”ARTICLE”,”profiles”:[1067,1633,1639,1670]}]

Last April, Enersence asked the Vilnius Commercial Arbitration Court to change the contract price between it and Litgrid.

mons In January 2021, an agreement was signed regarding the design and construction of the double-circuit reconstruction of the 330 kV single-circuit overhead line in KlaipdaGrobin, the value of which reached 14.8 million. EUR, but Enersence aims to increase the price to 18.2 million. Eur.

In addition, in March 2020, 16.5 million Euro value agreed for the reconstruction of the 330 kV single-circuit JurbarkasBitnai double-circuit overhead line Enersence aims to increase the price to 24.9 million. Eur.

Enersence also asked both parties to extend the terms for half a year.

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