Arbitration (with respect to performance of energy systems)

Power plant owners/operators and EPC-contractors /power plant OEMs can occassionally run into a dispute concerning higher than expected net heat rate (c.q. lower conversion efficiency) and/or lower power output of a power plant. In such disputes parties often stick to their own biased position/viewpoint.  To come to a solution or compromis,  it often is helpful to introduce an independent expert party, that has no interest in the conflict, that can provide an unbiased second opinion on the matter under discussion.  CerTa Veritas has experience in arbitration with respect to thermodynamic performance related issues in power plants.  Based on our long term experience in this field, we can make an independent judgement based on available reports,  (measured) process  data (e.g. test data and or DCS data),  plant design data, test standards, and, if required, additional test data, that we could measure with our own accurate, calibrated test equipment.  For customers our unbiased expert opinion can speed up the resolution of the conflict, and often preventing the  expensive, long and riskful way to the court.  In case a way to court is unavoidable an independent second opinion of CerTa Veritas will help our customer in defending his claim on the other party or defending against the claim from the other party.  Our experience is that our thorough analyses and reports considerably improves his chances for a better outcome.


CerTa Veritas has recently successfully advised and mediated in a dispute of more than 150 million EUR concerning the results of a performance test of a large coal fired power plant. Using our independent (post-test) second opinion on the execution and evaluation of the performance test, a (risky) settlement by court could be avoided and a bilateral settlement agreement was made, which saved our customer almost the whole claim.

In the Middle East CerTa Veritas was asked to provide an independent expert opinion on the performance tests of a new large coal (and/or gas) fired power plant. Our in-depth analysis showed that actual plant performance was better than reported in the original performance test report (that was based on the earlier agreed Performance Test Procedure in place, which made certain assumptions that were not met in practice). Due to our independent expert opinion, parties involved got a better picture of the real performance of the plant and this was helpful in mitigating and settling the dispute.

We have also advised in a smaller industrial scale boiler performance dispute. Using our independent second opinion report, our customer has won the lawsuit.

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Jacques de Ruijter, principal consultant

tel. +31 6 1506 3675