The Austrian power utility has succeeded to reach a compromise with the Bulgarian government on the dispute for taking over the retail electricity network in the country’s largest sea resort Sunny Beach. The cabinet approved yesterday a decision for transferring the ownership following a EUR 27mn international arbitration appeal launched by the Austrians. EVN will withdraw compensation demands after the government’s decision and will most likely acquire the electricity grid at the price of BGN 25mn (EUR 12.8mn) envisaged in the privatisation contract for the south-eastern electricity distributors. EVN acquired 67% of the two distributors in late 2004 but the state failed to fulfil its obligations for the power gird in Sunny Beach due to a conflict with the private shareholders in the resort.