Politics

Deputy Mayor Says Solution to High Corporate Gas Bills to Be Sought with State

By 28 January 2022
Deputy Mayor Says Solution to High Corporate Gas Bills to Be Sought with State
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ZAGREB, 28 Jan 2022 - Deputy Mayor Danijela Dolenec on Thursday evening commented on Economy Minister Tomislav Ćorić's accusing the City of Zagreb and Mayor Tomislav Tomašević of being responsible for markedly higher corporate gas bills in Zagreb, noting that a solution would have to be sought in cooperation with the state.

Ćorić said earlier in the day that Tomašević and his team were responsible for the markedly higher corporate gas bills in Zagreb, and not HDZ personnel, because they failed to procure it at better prices.

Tomašević said the former director of the City Gasworks' Supply division, Igor Pirija, who ran the division until last October, was responsible and that he was HDZ personnel, claiming that he did not buy gas at cheaper prices on time and that Zagreb businesses were in trouble because of him.

"The former management of the City Gasworks' Supply division made a number of bad business decisions that resulted in losses for that company and higher bills for corporate users. In the spring (of 2021) it signed contracts under which already then it sold gas at prices that were below market prices while buying it at variable prices. It created a huge risk and we see the consequences now," the deputy mayor said.

She put this in the context of the global energy crisis, saying that not only Zagreb but other local government units as well were having problems with gas prices and that a solution would have to be sought in cooperation with the state.

Talks are underway and the public will be informed of the results, she said.

Dolenec also noted that one should establish if the unfavourable contracts on gas prices were only bad business moves by the former management of the City Gasworks' Supply division or were harmful contracts for which one should be held criminally liable.

She also said that the city would cover the difference in the gas bill of the soup kitchen in Zagreb's Sveti Duh neighbourhood, which from the earlier monthly amount of HRK 6,000 has risen to 25,000.

"The St Anthony of Padua soup kitchen... provides around 400 meals a day. The city has financed soup kitchens since 2004, and in the budget for this year HRK 700,000 has been earmarked for soup kitchens," Dolenec said, noting that the city would make sure the operation of the soup kitchen was not jeopardised.

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