Croat entrepreneurs facing increased electricity prices want EU grants

The price of electricity for Businesses in Croatia has gone up by more than 40%. [EPA-EFE/Eloy Alonso]

Facing an increase in electricity prices, businesses should be assisted with significant grants from EU funds for renewable energy sources, so that companies can start building solar panels, the Voice of Entrepreneurs (UGP) association has said.

The price of electricity for businesses in Croatia has gone up by more than 40% and could increase as much as 60%, the UGP warned.

Businesses that have long-term contracts with energy suppliers might not feel the difference right away, but the contracts of many businesses have expired or will expire soon, meaning they can expect their electricity bills to go up, the UGP warned. This could in turn result in those businesses increasing the prices of their products, it added.

The UGP also recalled that businesses pay higher electricity prices than households and that an additional increase in those prices is unacceptable.

However, according to Economy and Sustainable Development Minister Tomislav Ćorić, there is no reason this would lead to higher electricity and gas bills for citizens.

“Those companies that concluded long-term contracts last year will not feel the price hike in the coming period, however, those companies which are doing that now will feel the adjustment on the market,” he added.

“You either have to decrease your margin or increase the price of your product. That is how the market functions,” he said, adding that the companies which were smart and contracted the price of electricity can now provide more competitive products.

(Željko Trkanjec | EURACTIV.hr)

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