WAY UPWARDS - HSE

2 Annual Report 2011
1.1 Foreword by the managing director
Challenges make us stronger
The challenges were ambitiously set also for 2011, while a great deal of exertion,
efforts and sacrifice was devoted to their realisation. Within the framework
of these endeavours, the time was solely a relative category of measuring
intervals between events, which were changing the conditions of trading and
electricity production. While simultaneously performing the largest energy investment,
it was necessary to make additional endeavours and face challenges
besides responding to changing circumstances in ordinary operating conditions.
The construction of replacement Unit 6 at TEŠ was under the spotlight in 2011.
In HSE and TEŠ we have been daily facing the critics of the project and responding
to dilemmas and issues, explaining figures, denying false statements
and arguing facts in favour of investment. Numerous activities were oriented
towards ensuring proper conditions to obtain the government guarantee for the
loan from the European Investment Bank. The timely acquisition of guarantee is
namely extremely important for a stable and costly efficient conclusion of investment
in the replacement Unit 6.
It is entirely reasonable that in addition to market permeability and revenue
growth, costs are decreasing and economy is increasing since the combination of
measures on the level of revenue as well as costs enables long-term competitive
capability and consequently good business results. In this regard, we can estimate
2011 as successful, especially if we consider extremely unfavourable natural
conditions, which have added a slightly bitter taste to successful electricity trade.
Several months of deteriorated hydrologic conditions in the wider area of South-
East Europe resulted in a slightly lower electricity production in hydropower
plants within the HSE Group, while in the wider region such condition changed
price ratios for electricity and costs of cross-border transfer capacities.
We hope that in 2012 nature will be more prone to us and that the draught period
will be followed by more extensive precipitation and thus the door will be
opened to better product and trade conditions. Even the goals we have set for the
current year are full of challenges and we will reach them solely with responsible
and enthusiastic work, cooperation of individuals and legal entities within the
HSE Group and the support of our owners. HR and professional potential of
the HSE Group is exceptional and the time people devote to our projects, their