I. THE PARTIES AND THE NATURE OF THEIR DISPUTE 

CLAIMANT: HRvATSKA ELEKTROPRIVREDA, D.O. 

1. The Claimant, Hrvatska elektroprivreda, d.d. ("HEP"), is the national electric company of Croatia. It was formed in July 1990 pursuant to the 1990 Electricity Act by the consolidation of 119 formerly independent electricity organisations. In 1994 HEP's status changed from a state-owned company to a joint-stock company. From 1994 to the present 100% of the stock in HEP has been owned by the Government of Croatia 1 

RESPONDENT: THE REpUBLIC OF SLOVENIA 

2. The Respondent, the Republic of Slovenia ("Slovenia"), came into existence on 25 June 1991 when the Slovenian parliament declared independence from the former Socialist Federal Republic ofYugoslavia.²