Croatia: Power market supply competition, HEP to react on competition market penetration with price decrease

12. July 2013. / SEE Energy News

Croatia power utility company and electricity supplier HEP, former monopoly supplier, did not managed quite to find the appropriate way to react to market entrance of competition in the area of wholesale electricity market liberalization. Beside RWE, Slovenian Gen-I made fast and effective market entrance taking over many of HEP former clients. Experiences with liberalization have showed that every monopolist needs to lose market and 30 to 40% of monopolists have lost their market on west. HEP needs to work on it to keep buyers as stable as possible.

Minister of Economy, Ivan Vrdoljak expects that HEP should finish its calculations for electricity price decrease as soon as possible. “HEP hasn’t reacted at the offers from competitors so far because it couldn’t do it from the beginning in accordance with the law. I expect from HEP to suggest electricity price decrease as soon as possible and in maximal amount considering that hydrology situation is very good this year. Experiences with liberalization have showed that every monopolist needs to lose market and 30 to 40% of monopolists have lost their market on west. HEP needs to work on it to keep buyers as stable as possible”, Minister Vrdoljak said for media. MINGO says that nobody was observing the possibility of electricity price increase until April.

Source;Ministry of Economy

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