DRAVA, KUPA, RJE»INA, LOKVARKA, LI»ANKA LIKA, DOBRA ...

EMPHASIS OF MATTER
Revenue recognition
The current regulatory framework does not provide details of allocation of the rewards pertaining to the electricity
generation activity. In accordance with the Law on the Amendments to the Energy Law from December 2004, a model
for determining the tariff systems for different customers was developed in December 2006, the application of which
was postponed to July 2007. The Group developed the model that was applicable throughout the year 2007.In June
2008, the Government of the Republic of Croatia promulgated a „Decision on The Electricity Generation Tariff Model,
with the exemption of eligible customers, with no tariff item amounts; The Electricity Transmission Tariff Model, with
no tariff item amounts; The Electricity Distribution Tariff Model, with no tariff amounts; and the Electricity Supply
Tariff Model, with the exemption of eligible customers, with no tariff amounts“. The Group has been applying the
tariff models since 1 July 2008. Our opinion is not modified in respect of this matter.
Accounting policy for leases
As described in Note 1 to the accompanying unconsolidated financial statements, the Company has received in
lease certain property, plant and equipment under finance lease agreements from HEP D.D. The leases bear interest
to the extent of the rates applicable to external funding acquired by the HEP D.D to construct those assets. These
lease liability are carried at nominal amounts because of the special organizational framework of the HEP Group.
Our opinion is not modified in respect of this matter.
Therefore, for a better understanding of the operations of the Company, the accompanying financial statements
should be read in conjunction with the consolidated financial statements of the HEP Group.
Deloitte d.o.o.
Branislav Vrtačnik, Certified Auditor
Zagreb, 25 May 2011
141
HEP ANNUAL REPORT 2010 CHAPTER 7 - REPORTS BY HEP GROUP COMPANIES WITH FINANCIAL STATEMENTS