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HEP is almost a monopolist in the Croatian electricity market

HEP has HRK 859.3 million of net profit in the first half of the year

 

In the first half of this year, the HEP Group generated consolidated net profit of HRK 859.3 million, which is a decrease of HRK 313.4 million or 26.7 percent compared to the same period last year, according to data from the consolidated financial statement of Hrvatska Elektroprivreda. Total electricity consumption of customers in Croatia in the first six months was 8,034 GWh, which is 0.5 percent less than in the same period last year. HEP’s revenues grew by 3.2% and expenditures even faster by 9.6%. In the first six months of this year, HEP increased its market share to 91.3 percent, compared to 88.2 percent in the same period last year, the report said. HEP Opskrba increased its sales by 4.8 percent, mainly to increase sales to companies, while HEP Elektra increased sales by 21 GWh, with household sales falling and company sales growing.

 

Poor hydrology

 

Poor hydrology, they say, caused a drop in generation of hydroelectric power plants, whose generation amounted to 2,929 GWh, which is 1,496 GWh less than in the first half of 2018. This was due to the fact that Dubrovnik HPP has been offline since January. This resulted in increased electricity purchase in the market by 1,167 GWh (37.8 percent) and generation in thermal power plants by 310 GWh (23 percent), which led to an increase in operating costs. A total of 4,258 GWh were purchased outside the system, of which 956 GWh relates to the purchase of electricity from renewable sources and cogeneration under the incentives system, and 3,302 GWh to imports and purchases from traders and producers in Croatia.

 

Expensive generation

 

Due to higher generation of thermal power plants and higher consumption of gas, coal and biomass with higher gas prices, the cost of electricity and heat generation is higher than HRK 156.2 million. The cost of electricity supply increased by HRK 573.8 million due to higher imported quantities and higher cost of imported electricity, HEP said. HEP Group’s investments in the first six months amount to HRK 868.3 million, covering replacement, reconstruction, revitalization, construction and preparation of construction of new energy facilities and connection of consumers.

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