Croatia’s main employers’ association has urged the government to raise the electricity price recognised for supplier compensation to €210/MWh from €160/MWh, citing rising wholesale costs. The Croatian Employers’ Association (HUP) made the proposal in an analysis published on 6 November 2026; the government had not approved it.
HUP said higher procurement costs and market volatility were squeezing independent retailers and putting competition at risk. The proposal comes ahead of the expiry of temporary electricity-price stabilisation measures on 31 March 2027.
Wholesale costs and the reimbursement formula
Under a government decree adopted in September, specified household groups and other eligible customers pay regulated electricity-energy prices. Suppliers can seek compensation for the difference between those charges and their contracted prices, but the contracted price recognised in the calculation is capped at €160/MWh even when the actual contract price is higher.
HUP cited average wholesale prices on CROPEX, Croatia’s wholesale electricity market, of €111.77/MWh in the first half of 2026 and €172.80/MWh in September. It put the average at approximately €223/MWh from 1 to 29 October, with daily prices exceeding €315/MWh near the end of the month.
The €160/MWh limit applies to the calculation of supplier compensation, not to wholesale electricity trading generally or the price paid by every customer. HUP’s proposed change would raise the recognised cost threshold by €50/MWh, or 31.25%, but would not automatically add €50/MWh to every claim. Payments depend on suppliers’ contracts, eligible customer volumes and the rules used to assess applications.
Spot-market averages do not show every retailer’s actual procurement costs, particularly where suppliers hedge forward. HUP said the higher threshold could ease pressure on independent retailers and help maintain supplier choice for businesses.
Liquidity and the government’s next decision
Suppliers serving protected customers may need to finance electricity purchases and trading collateral before receiving eligible compensation. Croatia’s energy regulator, HERA, must decide on complete reimbursement applications within 30 days, after which the economy ministry executes the decision. The timing and difference between actual and recognised costs can affect suppliers’ liquidity.
Independent retailers with smaller generation portfolios can be more exposed to procurement and financing costs than vertically integrated competitors. A higher threshold would also shift more of the cost of regulated retail electricity prices to public finances.
For traders and lenders, the proposal leaves open how much suppliers can recover under support rules and how long the measures will remain in force. Retailers negotiating contracts that extend beyond March 2027 must account for the possibility that the compensation mechanism expires, changes or is replaced.
The next decision is whether the government amends the compensation formula and clarifies funding, eligibility and the timetable for any extension. Until then, €210/MWh remains a proposal, not an enacted support measure.
