Establishment of HSE

The Slovenian electricity market was officially deregulated as of 15 April 2001, whereby all consumers with installed capacity exceeding 41 kW at a single point of supply or close to two thirds of all consumers were granted the option to select their preferred supplier of electricity. Market deregulation necessitated mandatory restructuring of power supply companies in order for them to survive in the resulting competitive environment.

HSE was established as a result of, and in response to, the processes of market deregulation. On 26 July 2001 the government of the Republic of Slovenia established HSE as an integrated entity of six companies, as follows: the hydropower producers Dravske elektrarne Maribor, and Soške elektrarne Nova Gorica, the coal-fired power plant TE Šoštanj and the Premogovnik Velenje coalmining company.

HSE was founded primarily with a view to ensure a unified front of the majority of power generation companies under free market conditions, implement the Construction of Hydropower Stations on the Lower Sava River project, and improve competitiveness of the companies integrated in the Group. Accordingly, HSE was to become the leader and key factor in the transformation of the Slovenian power generation sector.

The HSE Group is the largest Slovenian organisation in the area of power generation and is the largest producer and trader with electricity on the wholesale market in Slovenia. The hydropower plants, thermal power plants and a coalmine united into a single brand name – the HSE Group – together produce a large share of electricity in Slovenia; together with supply of electricity, which includes a combination of different sources, we play a crucial role in supplying safe, reliable and quality provision to domestic customers.

Since its conception onwards, HSE is the driving force of the Slovenian power industry. With constant growth and expansion into European markets, we are an equal competitor to the largest and the best in the field. Our activities principally comprise the area of energy and environment management as well as controlling the associated processes and risks. A wide array of activities comprises the following main groups:

• Production of electrical and thermal energy,
• Acquisition of lignite,
• Sale and trade with electrical and thermal energy, forward contracts for electrical energy, CO2 emission coupons, RECS certificates, guarantees of origin,
• Production optimisation of the HSE Group,
• Ensuring ancillary services, necessary for the functioning of the power generation system,
• Management and implementation of energy and environmental projects. 

We are not only active on the domestic, but also foreign electricity markets. We have our companies, subsidiary companies and representations in Slovenia, Croatia, Serbia, Macedonia, Italy, Hungary, Czech Republic, Romania and Slovakia. We are members of the European (German) Energy Exchange EEX, Energy Exchange Austria EXAA, French Exchange POWERNEXT, Italian Exchange IPEX, Czech Exchange OTE and PXE and the regional Energy Exchange SOUTHPOOL. With a diverse business network we tend to the increase in quotas and geographical expansion of operations, development and strengthening the company’s image and the HSE Group and that of entire Slovenia all across Europe.

The same as other companies in the European market, HSE is also meeting fast and radical changes that affect its operations daily. Therefore for its efficient operation, it is essential to recognise challenges and to form future strategies, intended for keeping a leading role in the country and the growing role in the region of south-eastern Europe, where HSE is positioning itself as a strategically important player.      

Numerous factors affect us in this light; among them the most important is surely the fluctuation of the offer and the demand for electricity. Regardless of where the curve fluctuates in different periods, one thing is certain: we must think of tomorrow today. Investing in new production capacities is a must and a trade-business imperative, which is written in the first place in our strategic plans. However, this is only one of the steps needed to defeat the long-term import dependence of Slovenia. More and more, the “soft-touch” approaches are coming to the forefront, which places every individual customer in the centre of attention and touches their conscience for the responsible use of electricity and a positive relationship with the environment. This is also our responsibility in the light of honouring the European regulations and legislation. Responsibility and professionalism, intertwined with a good measure of knowledge and experience have led us until now and will also do so in the future.