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The experience of market opening and

the impact on customers Croatian experience

15th ELECTRICITY FORUM OF THE ENERGY COMMUNITY

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MINISTRY OF ECONOMY LABUR AND ENTERPREUNERSHIP

Main features for period 2001 2009

Croatia became candidate for membership inEU;

Harmonisation of energy legislation with EUlegislation (over and above with Directive2003/54/EC (electricity) & Directive 2003/55/EC

(gas));

Restructuring of energy companies inaccordance with AVIS (electricity and oil sector

completed, gas ongoing); Process of privatisation (INA);

Establishment of new regulatory body;

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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 operationof reconnecting the UCTE 2 (south and east

Europe) zone with UCTE 1 zone in Year 2004.;

Positive environment for development ofelectricity and gas market in Europe;

Development of gas transport network.

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MINISTRY OF ECONOMY LABUR AND ENTERPREUNERSHIP

Legal framework 2001 20082001 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 - Amendments2008 Energy efficiency - new , Energy, Gas , Electricity -

Amendments

Total over 30 different secondary legislation documents

(government or ministry)

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Law 2008 obligatory forconsumers

Article 16

Retail customers are obliged by 30 June 2009 to

choose a supplier and conclude a supplycontract 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 anew supplier shall pay the price of balanced

electrical energy calculated for electrical energy

for privileged customers who have not found asupplier.

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Households

After 1 January 2011,the supplier for tariff customers supplies

at the price for electrical energy in public tenderspublic procurement

the Regulatory agency advertises every five years

selecting

the most favourable energy subject

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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 contractsupply eligible customers (market activity) - the

contract is concluded for a certain time,

Using of gridagreement on the use of the network (regulated

activity) - the contract is concluded for an indefinite

period of time

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Situation on 23th November 2009

Total number of contracted customers HEP supply 50.178

Total contracted consumption (kWh) 8.353.987

The total number of accounting measurement

sites 121.841

Total delivered el. energy in 2008. (kWh) 15.735.459.302

Total delivered el. energy to entrepreneurship in

2008. (kWh) 9.023.531.383Share of contracted supply in the total supply of

Electricity 53%

Share of contracted supply in the total supply ofEntrepreneurship 92%

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MINISTRY OF ECONOMY LABUR AND ENTERPREUNERSHIP

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!