ZAGREB, 8 Sept, 2021 - Minister of Economy and Sustainable Development Tomislav Ćorić said on Wednesday that he does not see any reason that would lead to higher electricity and gas bills for citizens.
Asked ahead of an inner cabinet meeting whether electricity and gas bills would increase, Ćorić said that he did not see any reason at the moment for that to happen.
"There is no absolute certainty that that won't occur, however, I do not see any reason for it to happen," he said.
In reference to an electricity price hike for enterprises, Ćorić said that one needs to be aware of the fact that the domestic electricity market is liberalised and functions in line with European and global markets.
"Those enterprises who concluded long-term contracts last year will not feel the price hike in the coming period, however, those enterprises which are doing that now will feel the adjustment on the market," he underscored.
The assumption is that many enterprises have protected themselves against unexpected changes and Ćorić doesn't believe that the price hike for electricity will be as high as 40% as reported in the media over the past few days, however, he added, a certain adjustment in prices will occur.
"This tells us that business conditions need to be stabilised, that is to avoid certain risks, and that can be achieved so that prices are agreed for a longer period," said Ćorić.
Asked whether entrepreneurs who didn't manage to conclude long-term contracts would transfer the higher cost to its consumers by increasing the price of their products, Ćorić said that the price of electricity is one of the key inputs in production which directly results in an increase in the cost of production.
"You either have to decrease your margin or increase the price of your product. That is how the market functions," he concluded, adding that those enterprises which were astute and contracted the price of electricity can now provide more competitive products.
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