June 23, 2024
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Croatia, Electricity prices for companies increase by 400%

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The Croatian Association of Employers, HUP, has asked the government to introduce subsidies for electricity for the economy, as companies receive new contracts from suppliers in which prices are nearly 400% higher.

HUP is asking for the introduction of a subsidy for electricity for the economy according to the model of support for natural gas, Poslovni dnevnik reported.

To remind, in February, Croatia presented a package worth 4.8 billion kuna (about 637 million euros), which limited the growth of electricity prices to 9.6% and gas to 20%. At that time, households received aid for electricity and gas, and the economy only for gas.

Now the employers’ association says that subsidies for electricity are needed especially for companies whose electricity costs exceed the growth of sales, ie production.

The night tariff increased 6.5 times

In order to mitigate the impact on the economy, at least the share of electricity costs that exceeds the existing ratio of costs of production and sales of products and services should be subsidized, they say in HUP.

Poslovni dnevnik reports the example of a company that received a proposal for a new contract from Hrvatska elektroprivreda (HEP) after the expiration of its three-year contract, which would enter into force at the end of April. The old price for daily consumption is 0.54 kuna (0.072 euros) per kilowatt-hour, and the new one is 2.54 kuna (0.34 euros), which is an increase of almost 400%. For night supply, the old price is 0.28 kuna (0.037 euros), and the new one is 2.10 kuna (0.28 euros), which is an increase of 6.5 times.

Businessmen have been receiving increased bills since October, but the rise in prices has been in double digits so far. Three-digit growth threatened companies in Bosnia and Herzegovina and Serbia, but prices were partially limited, while other countries in the region, such as Croatia, Bulgaria, Greece and Romania, introduced subsidies.

Abolish fees, excises, taxes that are included in the price of electricity

HUP is also requesting the temporary abolition of fees for the use of the distribution and transmission network, as well as all excises, fees and other taxes that are part of the final price of electricity.

It is important, they add, to enable the encouragement of investments in energy efficiency through the rapid announcement of public calls from the recovery and resilience plan in order to help resource-intensive and energy-intensive industries.

When it comes to models of assistance to the economy, HUP reminds that European countries are introducing models for encouraging investments in energy efficiency and the use of renewable energy without previously announced public calls, but according to clearly defined rules. Under such models, companies are exempt from paying income tax and given the possibility of retroactive subsidies.

Source: balkangreenenergynews.com


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