PRIVATIZATION OF THE POWER SECTOR IN CROATIA - DEVELOPMENTAL BREAKTHROUGH OR FALLACY OF THE NEOLIBERAL IDEOLOGY?

Authors analyze different dimensions of power sector – technological, organizational, economic, environmental and strategic – which show the su i generis character of electrical energy regarded as commodity. This implies also the peculiar functioning of themarket in the power sector. Consequently, privatization in the power sector has muchwider implications on the society and economy then privatization in any other economic sector. Among other things, we emphasize the problem of demarcation line between the risk and responsibility taken by the private sector and that endorsed by the state in securing necessary supply of energy for the normal functioning of society. Authors discusssome of the international experiences in the privatization and deregulation of the power sector. Based on these experiences and generic and national peculiarities of the power sector, we conclude that there are no reasonable grounds for full privatization and deregulation of the Croatian power sector or for its opening to global competition. On the otherhand, there is a room for partial privatization and opening of market for production of green energy.