On February 27, 2023, Azerbaijan launched an interstate arbitration process against Armenia in accordance with the Energy Charter Treaty. APA reports quoting Armenian Foreign Ministry, the Azerbaijani side in the arbitration notice handed over to Armenia demanded from Armenia "financial compensation for violation of Azerbaijan's sovereign rights to energy resources during almost 30 years of illegal occupation of Azerbaijani territories by Armenia from 1991 to 2020."

"It is noted that the largest hydropower facility, which was illegally operated by Armenia, is the Terter HPP, built on the Sarsang reservoir on the Terterchai River. In 1994 Armenia seized Sarsang reservoir and Terter HPP during the military occupation of the sovereign territories of Azerbaijan. It is stressed that also during the occupation Armenia built at least 37 hydropower facilities in the sovereign territories of Azerbaijan without permission. Along with the electricity produced by the Terter Hydroelectric Power Plant, the production from these unauthorized facilities was a "source of exports" to Armenia. To facilitate the illegal exploitation of hydropower reserves belonging to Azerbaijan, Armenia established a "unified system" for the distribution of electricity to Armenia from the former occupied territories, "regulated from Armenia the daily production of electricity" and issued fictitious "licences" to energy companies to operate existing facilities. It was noted that during the occupation Armenia illegally exploited Chardaghli coal field in Tartar region of Azerbaijan to use the coal produced there in Yerevan thermal power plant," the newspaper quotes.