ZAGREB, Sept 13 (Hina) - Croatia's electric power supply company (HEP) and America's Enron firm on Wednesday signed five new agreements regulating relations between the two cmpanies.
ZAGREB, Sept 13 (Hina) - Croatia's electric power supply company
(HEP) and America's Enron firm on Wednesday signed five new
agreements regulating relations between the two cmpanies. #L#
HEP management board chairman Ivo Covic and deputy president of the
Enron Europe Ltd. company, Eric Shaw, signed the Agreement on the
consensual termination of the agreement on the construction of the
Jertovec thermal power plant, the Agreement on the consensual
termination of the agreement on the buying and purchase of electric
power, a new Agreement on the buying and purchase of electric power,
an Agreement on the right to construct a thermal power plant in
Jertovec, and an Agreement on cooperation between HEP and Enron.
The newly-signed agreements thus terminated agreements previously
signed between the two companies last June.
Covic and Shaw expressed satisfaction with the signed agreements,
but refused to disclose any details of the agreements.
The contracts prohibit both sides from disclosing commercial
details of the contracts, Covic said.
"We are satisfied with the new contractual relations," he
asserted.
Covic and Shaw stressed the amount and price of electricity, which
is to be purchased, according to a contract, was lesser than the
previously agreed protocol from Houston.
Shaw explained a reason for this was Enron's wish to remain present
on the Croatian market and to cooperate with HEP.
The agreement on the right to construct a thermal power plant in
Jertovec gives Enron the right to build its own thermal power plant
with its own funds, should it wish to do so.
If we decide to construct, we will sell electricity on the market,
Shaw said.
The agreements with Enron, as outstanding expenses they did not
count on, affected HEP's request for an increase in the price of
electric power, although insignificantly.
HEP's has requested an increase in price by 6.8 per cent (with the
price of electricity going up by 25.6 per cent for households and
decreasing by 7.6 per cent for industry), the reasons being
primarily a significant growth of price of power products on the
market, this year's drought, among others.
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