Croatia: Power market competition and fight for clients; HEP vs Gen-I and RWE

27. June 2013. / SEE Energy News

Dario Jankovic, Representative of Public Administration for Mid Public Supply said to Dnevnik 3 HTV that electricity price was not the only criterion according to which Slovenian company GEN-I won the competition for government’s electricity supply.

He said that it was the second criterion of so called green supply (from renewable energy sources) that satisfied HEP also. But, the price was still the vital thing- Jankovic said.

Procedure of public supply with harsh criterions started in April and we have chosen the best offer from three bidders. HEP was at the third place. There are no privileges in processes of public supply, Jankovic said.

Slovenian Company GEN-I published that it had won the competition for electricity distribution for 35 ministries and public administration offices two days after they represented their offer. They claim that their only offer was 9 million HRK more profitable than HEP’s.

National Office for Public Supply has partly confirmed their statements. All this happens in the period when HEP has increased its prices so it can realize its investments.

Deputy President of the Government and Minister of Regional Development and EU Funds, Branko Grcic has stated that public purchase for electricity supply is transparent and that it is valuable for everyone and for the state also.

Grcic has answered this way on the question whether he wants to purchase electricity from Slovenian factory GEN-I that announced 12,5% lower price than HEP’s one if is going to be most profitable.

Slovenian Company GEN-I has announced lower electricity prices with reference to HEP and all other competition. German Company RWE Energija, which also offers cheaper electricity than HEP, has presented and delivered offers yesterday.

HEP announced that the calculation from this company will come out with new offer. HEP is also expected to decrease electricity prices. The question is why the citizens were paying for electricity to HEP a year after electricity price increased by 20%- imaginary investments, irrational business or something else?

Source; HEP/Serbia Energy See desk

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