| Tomaz Oresic from EFT Group feels that | | | | Though Slovenia is progressing in field of |
| Slovene energy market developments have been | | | | privatization of energy monopolies, the |
| influenced by conditions on the gross-sale | | | | situation in neighboring countries shows much |
| market. Energy prices in Slovenia have risen | | | | better picture. Profitability of energy |
| significantly comparing to what was the case | | | | sector in neighboring countries is according |
| a year before. The EEX energy price benchmark | | | | to Mr. Oresic much higher than in Slovenia. |
| has lost its value for price expectation | | | | With higher profits the ambitions for |
| calculations on Slovenia. The prices for 2008 | | | | expansion on other markets are much more |
| are 20 or 30% above the EEX index. According | | | | present than in Slovenia. It is no secret, |
| to Tomaz Oresic, Slovenia energy price | | | | and the European Commission constantly |
| developments are far more comparable to | | | | repeats that, that removing market entry |
| prices in Hungary or Italy. With the drastic | | | | obstacles on energy markets of Europe brings |
| increase in the price of the energy imported, | | | | lower prices, better quality and more profits |
| one can hardly imagine any domestic energy | | | | for the best in energy business. And the best |
| player would give up to the domestic energy | | | | are those, who are selected by their final |
| sources. | | | | customers, households, as the best. A kind of |
| | | | natural selection which works in each |
| That leads to market distortion and puts up | | | | developed society. |
| barriers to possible competition. This | | | | |
| situation furthermore leads to price increase | | | | We are daily confronted with news of big |
| and the customer will pay more than he could | | | | energy merger attempts and many of them are |
| if the market would function properly. Mr. | | | | achieved only after long persuasion of EC to |
| Oresic finds that dependence on domestic | | | | put pressure on governments to stop with |
| power plants means dependence on domestic | | | | protectionism of domestic energy owners. That |
| politics, as the majority of power plants in | | | | is clearly another big obstacle that |
| Slovenia are still governmentally controlled | | | | frequently drives the energy market back in |
| which naturally presents another obstacle for | | | | the era of 100% state owned monopolies. |
| competitive foreigners to enter the market. | | | | Though this is changing, the changes are not |
| Energy in Slovenia is still perceived as a | | | | fast enough to ease the burden of higher |
| sort of "common good". To be honest, this is | | | | prices which lay on households. |
| not just the case of Slovenia. In the | | | | |
| frequently misused term of "common good" by | | | | Energy is a big business and the energy |
| national politics, Tomaz Oresic sees the | | | | business will continue to grow in the future. |
| danger of neglecting interest of the owners | | | | Everyone wants to have his piece of sweet |
| and entrepreneurs in the energy business. | | | | energy pie on the table, but the consumers |
| Nobody is trying to undermine the importance | | | | are not around that table. They are outside |
| of energy supply safety and consistency, | | | | waiting to receive their monthly electricity |
| which is stated in the national and European | | | | and gas bills. As long as the consumer stays |
| directives, but the obvious consequence of | | | | behind those tightly closed doors, there is |
| such regulations often means that prices will | | | | really no market leverage that would bring |
| not always bring the profit to the owners | | | | the customers the best price-value product or |
| even if the market could offer that. | | | | service. |
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