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HEP ANNUAL REPORT 2010
CHAIRMAN’S REPORT
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CHAIRMAN’S REPORT
DARKO HORVAT
In 2010 HEP Group was able to consolidate its financial operations,
maintain operating liquidity and provide the citizens and industry in
the Republic of Croatia with a competitive, quality and uninterrupted
supply of electricity, heat energy and gas.
CHAIRMAN OF THE SUPERVISORY BOARD
TOGETHER WITH FULFILLING THE MAIN OBJECTIVES, HEP d.d. Management Board successfully carried out a number
of measures aimed to improve operating efficiency, in accordance with the conclusions of Croatia’s Government set
out for management boards of state majority-owned companies. The number of employees was reduced, staff costs
decreased and since July 2010 payments to creditors have been made as they fall due.
Efficiency improvement and operational transparency in particular were also helped by the implementation
of HEP Action Plan for the implementation of Anti-Corruption Program for State Majority-Owned Companies for the
Period 2010-2012. The Anti-Corruption Program, which is based on the Government’s Anti-Corruption Strategy, gives
a special emphasis on the strengthening of accountability and operational transparency, creation of conditions for
prevention of corruption at all levels and zero-tolerance approach to corruption.
It can be said that last year was a turning point for HEP’s future operations but also for electricity customers.
Although the electricity market in Croatia was fully opened in 2008, when all conditions for the proper functioning of
the market were fulfilled, it was not until 2010 that real changes took place when in addition to HEP Opskrba d.o.o.
three suppliers outside HEP Group began to actively participate in the market. The number of supplier switches has
continued to grow and other suppliers playing an active part creates new challenges.
In 2010, in the Ministry of the Economy, Labour and Entrepreneurship the most important activities of relevance
to HEP Group were directed toward harmonization of energy legal framework with the EU legislation and
toward preparation of implementing development documents of the Government in accordance with the Energy
Development Strategy of the Republic of Croatia adopted in late 2009 by the Croatian Parliament. The Government,
together with a consortium of consultants is about to complete the Strategy Implementation Program which will