Croatia

The Power Brokers
Investigation

In 2001, the Croatian Parliament passed major energy reform legislation.

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Reported by

OCCRP
August 24, 2007

In 2001, the Croatian Parliament passed major energy reform legislation. The law spelled out a plan for a gradual liberalization of the country's energy sector, with a focus on restructuring and privatizing electricity and natural gas companies. Croatia relies on imports to meet electricity demands.

The state-owned Hrvatska Elektroprivreda Group (HEP) has been unbundled into a separate generation, transmission and distribution company. Officials have said that Croatia does not plan to privatize HEP anytime soon. The HEP Privatization Act of 2002 requires that the government own at least 51 percent of HEP shares until Croatia joins the European Union.

Croatia operates on a Transmission System Operator model with the independent market operator. In 2002, it established its regulatory agency, Hrvatska energetska regulatorna agencija (HERA). Croatia allows energy trading, and there are now 17 licensed traders in Croatia.

| NET ELECTRICITY EXPORTER | 3,662 GWh | | Total Electrical Consumption (2004) | 16,094 GWh | |Total Electrical Production (2004) | 12,432 GWh | | Electrical Consumption per Capita (2002) | 3075.00 kWh/capita | | Average Household Electricity Price (2005) | ¢9.22/kWh (no tax) | | | ¢11.14/kWh (with tax) |