The experience of market opening and

the impact on customers

Croatian experience

15th ELECTRICITY FORUM OF THE ENERGY COMMUNITY

Main features for period 2001 2009

Croatia became candidate for membership in

EU;

Harmonisation of energy legislation with EU

legislation (over and above with Directive
2003/54/EC (electricity) & Directive 2003/55/EC
(gas));

Restructuring of energy companies in

accordance with AVIS (electricity and oil sector
completed, gas ongoing);

Process of privatisation (INA);

Establishment of new regulatory body;
MINISTRY OF ECONOMY LABUR AND ENTERPREUNERSHIP

Main features for period 2001 2009

Application of corresponding EU Directives for

renewable
and
energy
efficiency

establishment of Environmental Protection

and Energy Efficiency Fund;
Treaty establishing the Energy Community;
Building of transformer station TS 400/110 kV
Ernestinovo, what enabled successful operation
of reconnecting the UCTE 2 (south and east
Europe) zone with UCTE 1 zone in Year 2004.;
Positive environment for development of
electricity and gas market in Europe;
Development of gas transport network.
MINISTRY OF ECONOMY LABUR AND ENTERPREUNERSHIP

Legal framework 2001 2008

2001

Energy strategy

2001

First energy laws (Energy, Electricity, Gas,

Regulatory, Oil )

2002

Privatisation laws (HEP , INA)

2004

Regulatory, Electricity - new, Energy - Amendments

2006

Energy community,

2007

Electricity - Amendments

2008

Energy efficiency - new , Energy, Gas , Electricity Amendments

Total over 30 different secondary legislation documents

(government or ministry)

MINISTRY OF ECONOMY LABUR AND ENTERPREUNERSHIP

Law 2004 not obligatory for

Consumers
An eligible customer may freely choose its electricity
supplier.
1 January 2005 above 20 GWh and all customers
directly connected to the
transmission
1 July 2006
for customers with consumption
exceeding 9 GWh,
1 July 2007
for entrepreneurs,
1 July 2008
for all customers.

Law 2008 obligatory for consumers

Article 16
Retail customers are obliged by 30 June 2009 to
choose a supplier and conclude a supply
contract and in that period are entitled to
electricity supply from the supplier for tariff
customers.
Retail customers who within the period referred to
in Paragraph 1 of this Article have not found a
new supplier shall pay the price of balanced
electrical energy calculated for electrical energy
for privileged customers who have not found a
supplier.

Households
After 1 January 2011,
the supplier for tariff customers supplies
at the price for electrical energy in public tenders
public procurement
the Regulatory agency advertises every five years
selecting
the most favourable energy subject

What the electricity market brings customers?

Alternative supplier of electricity,
The negotiations on this agreement on the supply of
electricity,
the price of electricity created by market principles.
The buyer enters into two contracts:
Electricity supply contract
supply eligible customers (market activity) - the
contract is concluded for a certain time,
Using of grid
agreement on the use of the network (regulated
activity) - the contract is concluded for an indefinite
period of time

Problems
Knowledge of customers
data
customers do not know to buy electricity
Public Procurement
Public services
Tenders
No one wants to send a bids the competition
Reopening of competition

Situation on 23th November 2009

Total number of contracted customers HEP supply
Total contracted consumption
(kWh)
The total number of accounting measurement
sites
Total delivered el. energy in 2008.
(kWh)
Total delivered el. energy to entrepreneurship in
2008.
(kWh)
Share of contracted supply in the total supply of
Electricity
Share of contracted supply in the total supply of
Entrepreneurship

50.178
8.353.987
121.841
15.735.459.302
9.023.531.383
53%
92%

Further information

Ministry of economy, labour and entrepreneurship

Zagreb, Ulica Grada Vukovara 78

Telephone + 385 1 610-6113; fax 610-9113

E-mail: boris.maksijan@mingorp.hr

Thank you for your attention!

MINISTRY OF ECONOMY LABUR AND ENTERPREUNERSHIP