Croatia: The future of electricity suppliers RWE and GEN-I vs HEP strategy for market overtaking

30. June 2014. / SEE Energy News

One year after strong market penetration RWE Energija managed to get market share of 4% of total market and the share of Slovenia Gen-I increased to almost 6% of the market share.

Since the beginning of market liberalization and entrance of alternative electricity suppliers in households and small business market area the market share of state owned power utility company HEP decreased since 2008 only for 4.75% of all market consumers.

In total HEP Supply lost 33.787 consumers in biz areas and 15 thousand clients in household area.

The market participants RWE and GEN-I are satisfied. In RWE Energy CEO Zoran Milis stated that they accomplished more than planed and that in next period they are planning to increase the market share and with goal to reach 10% of the market. This year they are planning to start gas supply market for biz users.

Alternative suppliers still face serious issues and open topics. GEN-I CEO Robert Golob reminded on problems with question of unuque bill and there is also issue of non-transparent costs of balancing energy and market participants are obliged to buy green energy from HROTE under non market conditions. All this issues are reflecting on the costs of electricity for clients.

It is hard to estimate what is the market development future for this alternative suppliers. Middle term according to HEP the electricity prices will raise in the stock markets, the space for trading will be smaller and the market will remain only with companies with their own production capacities.

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