“We Have Grown Stronger from Every Crisis!”
Interview with Igor Zumrik, President of V-Elektra Slovakia, a.s.
With the liberalization of energy markets in Central Europe, V-Elektra carved out a distinct niche in the early 2000s as an intermediary between electricity producers and industrial consumers in the Czech Republic and Slovakia. Amid an ongoing energy crisis that has gripped Europe for more than four years, the company’s expertise is increasingly in high demand. In his interview with European Business, President Igor Zumrik discussed how V-Elektra continues to deliver value to its clients in a highly volatile market environment.
European Business: Mr. Zumrik, V-Elektra has been active in Central Europe’s energy market for more than two decades. How did the company evolve into what it is today?
Igor Zumrik: We entered the market as a subsidiary of the Ostelektra Group at a time when energy markets across Central and Western Europe were opening up through liberalization. We began in 2003 as a wholesale energy trader and started supplying eligible customers in 2005 – first in the Czech Republic and later in Slovakia. At that time, our counterparties included electricity producers, other traders, and cross-border trading operations. Over time, new opportunities emerged, particularly with renewable energy producers. We began working closely with operators of solar parks, wind farms, and hydroelectric facilities. One of the most significant structural shifts was the transition from bilateral trading to exchange-based trading. Today, the vast majority of our positions are executed via the European energy exchange, reflecting the substantial increase in market liquidity over the years.
European Business: What drove this transition?
Igor Zumrik: As bilateral liquidity declined, counterparties began demanding higher guarantees to mitigate risk. By contrast, trading via a European exchange significantly reduces counterparty risk, which in turn increases liquidity and trading volumes. Exchange membership also enabled us to trade country spreads. Today, in addition to our core markets in Slovakia and the Czech Republic, we trade products from Hungary, Germany, France, and Italy. In the past, this would have required maintaining subsidiaries in each of those markets.
European Business: In recent years, Europe has faced one energy crisis after another. How has V-Elektra been affected by these events?
Igor Zumrik: Since our company was founded in 2003, we have navigated multiple crises – from the Global Financial Crisis triggered by the collapse of Lehman Brothers, to the COVID-19 pandemic, the full-scale war in Ukraine since 2022, and most recently the conflict in Iran that began earlier this year. Looking back, each of these events has made us stronger but also more cautious. Even now, we maintain no open positions that would expose us to significant downside risk from current geopolitical tensions in the Middle East. That said, heightened volatility continues to affect our business, particularly through unusual movements in country spreads, as different markets react differently to geopolitical developments.
European Business: How has V-Elektra managed to minimize risk?
Igor Zumrik: While events such as the recent developments in Iran are inherently unpredictable, we take a consistently cautious approach to trading. We avoid building large open positions that could expose us to significant losses and only rarely engage in open trades. Instead, we focus on country spreads, where price movements tend to be less extreme. We also manage risk
rigorously on the customer side. We require sufficient guarantees and are prepared to decline business if those guarantees are not provided. This disciplined approach has allowed us to navigate more than two decades of market volatility without major setbacks.
European Business: How is your business evolving today?
Igor Zumrik: Our exchange membership enables us to hedge price differentials effectively on behalf of our clients. Consumers naturally seek to purchase energy at low prices, while producers aim to sell at higher levels. We bridge that gap by purchasing from producers when prices are high and hedging those positions on the exchange, while buying from the exchange when prices are lower to supply our customers. In recent years, as energy prices have surged, we have significantly expanded our advisory services. Many of our clients are focused on their core operations and lack the resources to navigate the complexities of energy markets themselves. We therefore provide them with monthly market overviews and recommend optimal procurement strategies and timing. For example, in the second quarter of 2026, many clients opted for fixed-price contracts rather than relying on the spot market. At the same time, energy resilience is becoming an increasingly critical priority both for individual market participants and for the European energy system as a whole. We hope that policymakers will adopt a pragmatic approach to safeguarding this fundamental pillar of European industry.
European Business: Many of your clients have been working with V-Elektra for over a decade at this point. What lies at the heart of these close relationships?
Igor Zumrik: That longevity reflects our core philosophy. We see ourselves as true partners to both energy consumers and suppliers, actively facilitating mutually beneficial relationships within the European market. We are deeply committed to these principles and strive to demonstrate them every day. We provide honest, transparent advice – even on strategic questions such as energy independence, including investments in solar installations, battery storage, or heat pumps. Some clients even ask whether such investments might reduce their reliance on V-Elektra, which, in theory, might be detrimental to our business. Our answer is always the same: their business priorities come first. We want them to make the decisions that are best for them.