Tomaz Oresic from EFT Group feels that Slovene energy market developments have been influenced by conditions on the gross-sale market. Energy prices in Slovenia have risen significantly comparing to what was the case a year before. The EEX energy price benchmark has lost its value for price expectation calculations on Slovenia. The prices for 2008 are 20 or 30% above the EEX index. According to Tomaz Oresic, Slovenia energy price developments are far more comparable to prices in Hungary or Italy. With the drastic increase in the price of the energy imported, one can hardly imagine any domestic energy player would give up to the domestic energy sources.That leads to market distortion and puts up barriers to possible competition. This situation furthermore leads to price increase and the customer will pay more than he could if the market would function properly. Mr. Oresic finds that dependence on domestic power plants means dependence on domestic politics, as the majority of power plants in Slovenia are still governmentally controlled which naturally presents another obstacle for competitive foreigners to enter the market. Energy in Slovenia is still perceived as a sort of “common good”. To be honest, this is not just the case… Read full this story
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