I. INTRODUCTION AND PROCEDURAL HISTORY

1. On 19 January 2011, AES Summit Generation Limited and AES-Tisza Erőmű Kft. (together, the “Applicants” or “AES”) filed a timely application for annulment, pursuant to Article 52 of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the “ICSID Convention” or “Convention”), of the Award which was rendered on 23 September 2010 (the “Award”) in favour of Hungary (“Hungary” or “Respondent”) by an Arbitral Tribunal composed of Mr. Claus von Wobeser (President), Professor Brigitte Stern and J. William Rowley QC (the “Tribunal”).

2. The Award determined that the dispute between Applicants and Respondent (the “Parties”) related to an alleged violation by Respondent of its obligations under the Energy Charter Treaty (the “ECT”). Applicants’ original claim arose out of Hungary’s enactment of the 2006 Electricity Act Amendment, which provided for the re-introduction of regulated prices for electricity generators pursuant to two price decrees in December 2006 and February 2007 respectively. Administrative prices had been abolished as from 01 January 2004, pursuant to the Electricity Act 2001, prior to Hungary’s accession to the European Union. Specifically, Applicants alleged that Hungary violated its obligations under the ECT in the following respects: (i) breach of its obligation to provide fair and equitable treatment; (ii) impairment of AES’s investment by unreasonable and discriminatory measures; (iii) breach of its obligation to provide national treatment; (iv) breach of its obligation to provide most-favoured nation treatment; (v) breach of its obligation to provide constant protection and security; and (vi) expropriation.