POWER INDUSTRY AND LARGE COMPANIES DISCUSS PRICES OF ELECTRICITY

ZAGREB, Oct 16 (Hina) - Representatives of the Croatian Power Industry (HEP) on Wednesday claimed that all data for September confirmed their initial estimates that electricity for large companies would not increase greatly while company representatives presented electricity bills that were 10 to 40 per cent higher. #L# At a round table about the application of the new pricing system for the power supplies for businesses held at the Croatian Chamber of Commerce on Wednesday, data was presented that was collected by a survey of 50 industrial consumers. During a debate that followed, representatives of some 70 companies confirmed the data. The conclusion was that the monthly electricity bills for companies will be between 5.7 to 50 per cent higher in the new pricing system. Company representatives believe that the price increase is particularly concerning because the cost of electricity for some companies in some branches amount to between 10 and 50 per cent of their total costs. As such, these increases will not be able to be absorbed into their costs and so they are extremely concerned about completing jobs already commenced or future contracts. They warned such situation prevents them from exporting because of previously arranged prices which will result negatively on the competitiveness of Croatian products. HEP Chief Executive Officer Ivo Covic announced that HEP would examine each case where prices increased more than 15 per cent and where this would influence the cost of business and products. This procedure could take some time and could result in a new model for industry, discounts for certain periods, the timing of particular tariffs etc. that is, that everything would be done so that price increases are kept to a minimum. (hina) sp sb