Lifestyle

Heat Energy Provider Demands Higher Prices

By 27 August 2022

ZAGREB, 27 August, 2022 - The HEP power provider, which includes the HEP-Toplinarstvo heat energy provider, has announced that it will submit to the HERA energy regulator a request for a new heating and hot water prices, Jutarnji List daily said on Saturday.

Tariffs for the production and distribution of heat energy are set based on the methodology adopted by HERA, so the changed prices for buyers will be known after HERA considers HEP's request and decides on new tariffs.

It is clear that HEP-Toplinarstvo and other suppliers of households, industry, institutions, and other consumers cannot operate profitably due to rapid gas price hikes in the world and domestic markets, given that more than 90% of heat energy production is fueled by gas.

HEP told the daily that in a number of Croatian cities where HEP-Toplinarstvo is not the provider, heat energy prices have significantly gone up due to "a drastic increase in input costs".

It is estimated that HEP-Toplinarstvo supplies 80% of the 150,000 heat energy buyers in the country, including big cities like Zagreb and Osijek.

Its announcement that it will ask for new prices is not unexpected. HEP management board chairman Frane Barbarić told Jutarnji List recently that a new, drastic price increase was necessary.

Last year, gas prices on the European market jumped 170% and this year, due to Russia's attack on Ukraine, they increased another 164% before higher demand in July and August, which additionally pushed them up, the daily said.

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