A significant budget reallocation has been approved in Croatia to address ongoing financial imbalances in the gas market, with the Government redirecting €213 million to compensate energy suppliers for differences between market and regulated gas prices.
The funds will be used to cover the gap incurred by suppliers such as Gradska Plinara Zagreb-Opskrba and E.ON Plin, based on calculations provided by the Croatian Energy Regulatory Agency (HERA). The compensation applies to the period from the second quarter of 2023 through the third quarter of 2024, when regulated prices did not fully reflect market conditions.
This financial measure is being carried out under the 2026 State Budget Execution Law, which allows the Government to reallocate funds during the fiscal year without the usual constraints. This flexibility is specifically designed to respond to the economic consequences of the wider European security crisis triggered by the war in Ukraine.
In addition to covering past discrepancies, part of the reallocated funds will also be directed toward new obligations arising from continued market volatility. Authorities have indicated that updated assessments show a growing need for financial support, not only for energy companies but also for certain off-budget entities.
The decision highlights the ongoing pressure on public finances caused by external energy shocks, as well as the Government’s commitment to ensuring stability and continuity in the national gas supply system.
