Gov't says gas prices to stay the same

Gas prices for households will not go up. The Croatian government decided on a conference call that the price of gas at which the wholesale gas supplier HEP is obliged to sell gas to public household gas suppliers will be HRK 0.1809 per kilowatt hour (kWh).

The price refers to the period from 1 April 2017 to 31 March 2018, the government said, noting that based on its decision, prices of gas for households would remain the same.

"Following instructions from Prime Minister Andrej Plenkovic, the Environmental Protection and Energy Ministry held talks with all stakeholders involved in the structure of the gas price, and based on today's decision, the price of natural gas for households will remain the same as of April," the government said.

The price includes all fees except those charged when a household supplier takes over a quantity of gas from the wholesale supplier that is higher or lower than the one determined by their gas sale contract, and it also does not include VAT.

The decision was made in line with amendments to the Gas Market Act, adopted in mid-February.

Until March 31 this year, in force will be government decisions from March 2016 which regulate prices at which the gas producer INA is obliged to sell domestically produced gas to the wholesale supplier HEP and the price at which HEP is obliged to sell gas to household gas suppliers.

Under those decisions, from 1 April 2016 to 31 March 2017, gas produced in Croatia will be sold to HEP at HRK 0.1369 per kWh, while HEP will sell gas to household gas suppliers at HRK 0.1734 per kWh.

The amendments to the Gas Market Act provide for further liberalisation of that market and the law no longer obliges the gas producer to sell its entire quantity of domestic gas to suppliers in Croatia.

The adopted amendments define a new gas market model, with the competent ministry conducting tenders, in cooperation with the energy regulator HERA and the gas market operator HROTE, to choose wholesale gas suppliers.

Until such tenders are introduced, the amendments envisage that HEP will perform the services of the wholesale gas supplier.

The Environmental Protection and Energy Ministry said last week that the government would try to cushion an increase in gas prices by reducing the share of transit, transport and storage costs in the gas price as well as that it would try to influence the price which HEP pays to INA for domestically produced gas.

Following the latest government decision, household gas suppliers need to seek HERA's approval for their final gas price and HERA will determine the price for each individual supplier.

Text: Hina

 

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