HEARING IN CROATIAN SUIT AGAINST SLOVENE ELECTRIC POWER SUPPLY CO.S

ZAGREB, Oct 16 (Hina) - Croatia's public utility company Electrical Power Supply (HEP) issued a statement Monday announcing the start of civil proceedings on October 17 of HEP versus the Slovene Electric Power Supply industry (ELES) and the Krsko nuclear power plant. HEP filed a suit against ELES and Krsko last November, demanding US$137.6 million for capital expenditures and additional engaged resources for the failure of supplying HEP with electricity from Krsko. The electrical power supply was severed on July 30, 1998, when the Slovene government decided on transforming Krsko into a public company, thus alienating all establishing rights from the Croatian utility company. The nuclear power plant was build by Croatia and Slovenia jointly, on Slovene territory, ten years ago. Following the independence of the two countries from the former Yugoslavia, Croatia and Slovenia failed to sign a contract confirming interrelations and ownership rights in Krsko. Disagreements surrounding the issue culminated in mid-1998 when Slovenia ceased transmitting energy to Croatia. The severing of supply from Krsko is in contrast to the basic agreements for the nuclear power plant and agreements between HEP and ELES, the Croatian company said in the statement. On December 31 of last year, HEP filed a request to the Slovene Constitutional Court, but the request, the HEP stated, has not yet been considered. The Krsko plant also filed a suit against the HEP on July 21, 1998, before the Krsko county court for HEP's alleged US$50 million debt to the plant. The debt appears to be the difference between the amount HEP recognised and paid and Krsko invoices which included, the HEP stressed, unargumented high expenses of business which HEP could not accept. Most of the amount relates to the expenses of dismantling the nuclear power plant as set unilaterally by the Slovene side. The first hearing in Krsko is scheduled for November 10. (hina) lml jn