Croatia: The production cost of TPP Plomin C electricity will be confidential

13. July 2015. / SEE Energy News

HEP does not intend to disclose the purchase price, which will negotiate with Marubeni

If it starts business with Marubeni for construction of new C unit at TPP Plomin, HEP has no intention to publicly disclose at what price would buy electricity from that coal power plant.

On inquiry to local Croatian NGOs, power utility HEP that details of the business or contractual relationship with a strategic partner cannot be published, because the strategic nature of this project, competition and common international business and legal standards make contractual relations as trade secret.

Just the production costs of electricity from TPP Plomin is one of the stumbling factors of this project, and in the media it was a sum of 75 EUR per MWh to 110 euros per MWh, depending on whether HEP buys 50% of the production from power plants of 500 MW, or it will redeem all the produced electricity. It was unofficially heard that analyses have shown for HEP would have been optimal if it could buy all the energy produced, because in this case the price would be lower. But the question is whether HEP could get the green light of Directorate for Competition, because it can be considered as state aid that distorts market game because HEP still holds more than 80% of the electricity market in Croatia.

It is important to mentioned that UK is in the process of going into business of building NPP Hinkley Point C, which should be built by EDF, at the beginning publicly published the negotiated price of electricity, which should be purchased from a French company for 35 years. This price was, in fact, twice bigger of the market one, which caused a lot of debate and controversy in public, but the Government did not mention trade secrets in this business, which has got the green light of the Directorate for competition. , transmits Serbia-energy.eu

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