HOPS purchases the losses by minimizing their total cost according to transparent, non-discriminatory market based procedures pursuant to Article 86, Paragraph 26 of the Electricity Market Act.
HOPS contracts the long-term (annual, quarterly or monthly) supply of losses, while on daily basis HOPS procures short-term losses on the Croatian Power Exchange (CROPEX) thus providing energy to cover losses in the transmission network.
Long-term supply: Involves a procurement of known quantities of energy from public Auctions, with the selection criterion being the lowest bid price that meets all the bidding conditions.
Short-term supply: involves a purchase of electricity to cover the day-ahead losses on the Croatian Power Exchange (CROPEX).