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Croatia raises electricity and gas prices by 10 percent

Government declares that subsidies for them will continue

Sep 7, 2024 06:29 132

Croatia raises electricity and gas prices by 10 percent  - 1

Within the seventh package of measures to protect households and businesses from increase in prices, the Croatian government allocated nearly 248 million euros, Prime Minister Andrej Plenković announced on Friday, adding that subsidies for electricity and gas will continue to be granted, but their prices will increase by 10 percent in the next six months, reported the Croatian agency HINA, quoted by BTA.

The priorities of the measures are the maintenance of low energy prices and the protection of the most vulnerable groups of citizens, Plenkovic said at a cabinet meeting, noting that the package was agreed with the coalition partners and presented to the social partners.

Regarding electricity, Plenkovic stated that the new package will continue to subsidize households, enterprises and others. However, as EU countries gradually move away from interventionist policies and support for households and businesses, electricity prices will rise by 10 percent in six months.

In November, electricity bills will increase by 6.5 percent, and the rest of the increase will happen early next year.

The electricity bill for the average household consumption, without the government measures, is expected to be 584 euros per year, but with the measures it is reduced to 482 euros, Plenkovic said.

Natural gas prices will also increase by 10 percent in six months. Without the government measures, the average annual expenditure of households on gas will be 680 euros, but with the measures it will be 595 euros, Plenkovic added.

For the public non-profit sector and small businesses, the regime and model remain the same as in the spring package of measures.

For heating energy, the subsidy for an average apartment with an area of 60 square meters is 62 euros, considering that the average annual expenditure without the subsidy is 377 euros, and with the subsidy - 315 euros.

The second part of the government package is aimed at the most vulnerable social groups. This part includes compensation for vulnerable energy users and covers 88,500 people. The total amount of the monthly allowance is 70 euros, and it is provided in the form of a voucher.

There is also compensation to mitigate the increase in energy costs for social service providers, which ranges from €70 to €540 per month.

One-off benefit for pensioners

The government has also introduced a ninth round of one-off aid for pensioners with pensions of up to €840, covering 760,000 people.

Pensioners with pensions up to 350 euros will receive 160 euros, those with pensions between 350 and 500 euros - 120 euros, those with pensions between 500 and 650 euros - 80 euros, and those with pensions between 650 and 840 euros - 60 euros .

For students, 4.5 million euros have been earmarked for food subsidies, and for 13,000 unemployed war veterans, a one-time aid of 100 euros has been provided.