Home / Media and Publications / Kosor: The increase in electricity prices will be less than anticipated

Kosor: The increase in electricity prices will be less than anticipated

The Croatian Electric Company (HEP) recorded a profit of around 900 million kuna in the first few months of this year, and as of today, HEP’s debts amount to about 200 million kuna, stated today the Prime Minister and President of HDZ, Jadranka Kosor.

‘Today we received the results from HEP, where HEP reports a profit of about 900 million kuna for these first few months, and as of today, around 200 million kuna in debts,’ said Kosor, who, after signing a cooperation agreement between the two sister parties with the President of HDZ BiH, Dragan Čović, also answered journalists’ questions about resolving the issue of illiquidity.

This is also confirmed by HEP, which states that the difference between HEP’s revenues and expenditures in the first four months amounted to 904 million kuna. In the first four months of this year, HEP’s revenues were close to five billion kuna, while expenditures were 900 million kuna lower, according to sources in HEP. HEP explains this good result by favorable hydrological conditions and thus increased production from hydroelectric plants, which also allowed for less use of expensive fuel oil in thermal power plants.

However, with the arrival of summer, there will likely be less water, so more fuel oil will have to be used, they say at HEP. They also emphasize that they have managed to reduce their obligations, which currently amount to around 200 million kuna. When the new Management (led by Lea Begović) came to the company, HEP had about 750 million kuna in unpaid obligations, and now it has come down to 200 million, they say at HEP, noting that the issue of debts will soon be resolved.

‘HEP has started to manage all its resources properly,’ they convey from HEP, adding that debts owed to HEP are currently at a level of about 1.4 billion kuna. Prime Minister Kosor reiterated the data on HEP’s good results so far this year while guesting on the Croatian Radio show How the Government Works and announced that therefore the increase in electricity prices that will occur this year will be less than anticipated. ‘Based on the latest data, the increase will be less than anticipated, planned, and requested,’ said Kosor. She could not specify how much the ‘increase in electricity prices that will occur this year’ might be, noting that discussions are still ongoing. (H)