At a regional economic forum this week, speakers cautioned that Croatia’s current electricity pricing system has created a structural imbalance: households continue to enjoy relatively low electricity prices, while businesses face significantly higher costs. This disparity, they warned, is eroding the competitiveness of domestic industry and limiting its ability to invest. Over the past six years, electricity prices for companies have risen by around 120%, placing Croatia among the most expensive EU member states last year for small and medium-sized enterprises.
Representatives of the Croatian Chamber of Economy (HGK) stressed that this cost pressure is hampering industrial productivity and threatening long-term growth. Marija Šculac, head of HGK’s Industry and Sustainable Development Department, said that companies urgently need clearer long-term energy policies, better economic conditions, and faster administrative procedures in order to stay competitive.
Forum participants also highlighted that the industries most exposed to high electricity prices include metal production, chemicals, cement manufacturing, and other energy-intensive sectors. According to a recent Eurochambres analysis, rising electricity prices have a direct impact on employment: each 10% increase in electricity costs is associated with a 1% to 1.5% decline in employment in energy-dependent industries.
