Croatia: Increased electricity sector and its profitability in past decade, SEE Energy News
Total revenues over the 11-year period increased from 2.77 billion euros in 2008 to 3.5 billion euros in 2018. Total expenditures also increased, from 2.73 billion to 3.2 billion euros.
An analysis of the business in the electricity generation, transmission and distribution activities from 2008 to 2018 shows that the number of companies involved has increased significantly. While the number of companies increased from 89 to 709 at the end of 2018, the number of employees in 2018 (10,913) was lower than in 2008 (13,465).
During the period under review, a positive financial result was achieved – net profit, which rose from 28.3 million euros in 2008 to 237 million euros in 2018, an increase of 732.6 %.
The highest revenues and profits in 2018 were generated by three state-owned companies – HEP, HEP Production (electricity generation) and HEP ODS (electricity distribution). Among privately owned companies, GEN-I and Proenergy generated the highest revenues.
However, the trade balance during this period was negative as imports in each of the years observed were higher than exports. The biggest difference between exports and imports was 2012, when it amounted to 580 million euros, and the smallest in 2014 – some 210 million euros. In 2018, the negative trade balance amounted to 315 million euros, which is 24.5 % more than in 2017.
The restructuring of the electricity sector in Croatia began in 2001, while formal liberalization began in 2008, when domestic laws were aligned with the European Union. As of 1 July 2008, all electricity customers have been given the opportunity to choose their electricity supplier.
During the 11-year period, several new competitors emerged in the electricity market, most of which were established after 2009.