SABOR ADOPTS PACKAGE OF POWER INDUSTRY BILLS

ZAGREB, July 19 (Hina) - The Croatian parliament on Thursday adopted a package of five laws which introduce market relations in the power sector and providing conditions for the restructuring and privatisation of the INA oil company and the HEP power industry. The package includes laws on power, the regulation of power industries, the electricity market, oil and oil products market, and the gas market. The laws go into force on January 1, 2002 except for the Law on the Regulation of Power Industries, which takes effect this month. The laws are based on a strategy of reform of the power sector the parliament adopted last year and it adjusts domestic legislation in the power sector to that of the European Union. Under these laws, 16 leading companies would have privileged buyer status and would be able to negotiate the price of electricity with their suppliers and even import it. There would be two such buyers in the gas sector. The market of power products will be controlled by an independent council for the regulation of power industries, which includes five members, who are appointed by the parliament at the government's proposal. The laws offer conditions for the privatisation of INA and HEP, with the two companies remaining whole units. The value of INA has been estimated at 1.7 and of HEP at 2.6 billion US dollars. (hina) sb rml