As part of its energy policy, Pakistan concluded a series of electricity supply agreements with many power companies. In these agreements, Pakistan committed to pay the fuel expenses needed for plants. During the execution of the contract, Pakistan complained that the companies were not operating their plants at full capacity, the latter feeling unable to do so as the State had not paid the required fuel expenses.
After initiating a proceeding before the Pakistani Courts and an independent expert, the power companies filed a Request for LCIA Arbitration. The Arbitral Tribunal, led by the Australian Doug Jones, ordered Pakistan to pay US$ 167 million to power companies due to the violation of supply agreements in the 1990’s.