PRICES OF ELECTRICITY MIGHT INCREASE

ZAGREB, Dec 11 (Hina) - The price of electricity in Croatia might increase in case of a long-standing market instability, the chairman of the board of the Croatian power supply company HEP, Ivo Covic, said on Tuesday. Several recent developments, including the Enron bankruptcy case, several major power station failures, and the increased winter- time consumption, have increased the price of electricity on the world market by more than 50 percent. Analysts estimate this is a passing disturbance, but if it extends to a longer period of time, HEP's prices will have to rise too, said Covic. The current daily consumption of electricity in Croatia exceeds 50 million kWh, 20-30 percent of which has to be imported. There is nothing new in connection with HEP's relations with Enron, the United States company which filed for bankruptcy earlier this month. The fate of the agreement between the two firms will be known following the legal proceedings underway, said Covic. HEP will wrap up the year 2001, after last year's 700 million kuna (approx. US$84.6 million) loss, with positive financial results. The company's investments this year amounted to 1.6 billion kuna (approx. US$193.5 million). Covic announced an ambitious investment programme for 2002 as well. (hina) ha sb