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

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HEP ANNUAL REPORT 2010
CHAPTER 7 - REPORTS BY HEP GROUP COMPANIES WITH FINANCIAL STATEMENTS
HEP-PLIN d.o.o.
NIKOLA LIOVIΔ
DIRECTOR
HEP-PLIN (HEP Gas) carries out two energy businesses of the gas sector: gas distribution and gas supply to customers.
The conditions for the carrying out of these activities are laid down, in addition to the Companies Act, in special
laws: Energy Act and Gas Market Act and in a number of implementing regulations. In accordance with this, the
company’s main business goals are:
- reliable and uninterrupted gas distribution according to regulated principles of public service provision together
with the highest degree of environmental protection and development of the existing distribution system and
expansion into new areas, and
- gas supply to customers in its supply areas, namely: tariff customers (households) according to regulated
principles of public service provision and other customers according to market principles by negotiating mutual
rights and obligations.
The business operations and state of affairs of the company in 2010 were marked by stagnation of business activities
in Croatia, reflected as decrease in gas sales to commercial customers, especially to our large customers. In contrast
to that, in residential customers, who use by far the most gas for heating, gas consumption slightly increased due
to colder weather than in the previous year in the heating season.
Due to the implementation of savings measures it is planned to further cut all costs that do not directly affect
the security and continuity of gas supply to customers.
Current tasks arising from the set objectives were successfully carried out to our and our customers’ satisfaction
and to the satisfaction of our concession grantors – units of area and local self governments. The distribution
network has been maintained in the proper and functional working order and breakdowns at gas supply points were
repaired in the shortest period possible by duty crews. There were no major disruptions in gas deliveries resulting
from a major breakdown in the gas network. Occasional minor breakdowns were not the consequence of the state
of the network but damages caused by third party works within the perimeter of the gas network.
The gas delivered was billed at prices adopted by the Government. Changes were unusually frequent, as many
as five times during 2010 – at the beginning of each quarter and on November 1. In 2010, payment collection difficulties
continued, especially from commercial customers, which considerably worsened the Company’s solvency.
In spite of that, thanks to among other things the centralized financial function in HEP Group, the worse solvency
did not considerably affect the fulfilling of our obligations for the purchased gas.
In the area of development, last year we continued concession construction of the gas network in Baranja
and in the municipalities of Gorjani, Punitovci and Šodolovci. Unfortunately, connection of new customers to the
completed network did not unfold according to our plans and expectations due to the economic and social crises.
The existing network underwent the necessary modifications and reconstruction in accordance with the reduced
investment funds.