BEGOVIC: CRO ELECTRICITY SYSTEM FUNCTIONING EVEN WITHOUT KRSKO

( Editorial: --> 9486 ) ZAGREB, Sept 10 (Hina) - The Croatian power distributor HEP is still not receiving electricity from the Krsko nuclear power station but Croatia's power system is functioning normally and there is no threat of insufficient electricity, HEP management board president Damir Begovic said at a press conference on Thursday in Zagreb. Krsko is a plant jointly-owned by Croatia and Slovenia and was set up in 1981. It is on Slovene territory. On July 30 Slovenia disconnected two transmission lines from Krsko supplying Croatia with electricity, citing Croatia's unpaid debts of 30 million DM as the reason. The same day the Slovene Government passed an order by which the plant was declared a public company. Even though Slovenia subsequently re-connected the lines, Croatia refused to receive electricity while this order remained in effect. In keeping with the current situation, HEP is setting up a plan for the use of electrical power until the end of the year so that regular and normal power supplies can be ensured for all users. As far as the issue of ownership of Krsko is concerned, HEP is awaiting results from negotiations between the Croatian and Slovenian Economy Ministries, Begovic said. HEP submitted the ownership matter to the Croatian Economy Ministry warning of the Slovene Government's inappropriateness in transforming the power plant into a public company. HEP forwarded the Krsko nuclear power plant and the Slovenian electricity supplier ELES with a bill for US$8.5 million, for power not delivered. The bill, Begovic said, is based on existing agreements under which no side has the right to use electricity which is intended for the other side without their approval. Two days prior to forwarding the bill, HEP received an indictment demanding 100 million German marks. HEP's current debts to the Krsko nuclear power stands at about 11 million marks, which covers about 40 days use. HEP explains that this breaks down to a price of 2.05 US cents per KWh, to cover the costs of ongoing production while expenses to cover loan payments for the construction of the Krsko power plant are covered by HEP's balance. Begovic rejected the possibility that HEP representatives would be involved in the activities of the Temporary Management Committee (PPO) of the nuclear plant while the Slovene order was in effect. "We do not wish to be a decoration in the PPO," he said. As far as HEP is concerned the Slovene side has not responded to recommendations in an inter-state agreement which Croatia sent back in April this year. HEP's managing director nevertheless believes that the problem over the power plant could be easily resolved. "We suggested that existing agreements be ratified in the parliaments of the two countries and that would solve everything," Begovic said. The existing agreements namely offer Croatia an advantage should the matter be referred for international arbitration regarding the power plant, he said. (Hina) sp jn /mbr 101827 MET sep 98