Croatia, Government’s package of measures will significantly mitigate the rise in gas prices

Earlier this week HERA adopted a decision on the amount of tariff items for the public gas supply service for the period from 1 April to 31 December 2022 and for the period from 1 January to 31 March 2023, as well as the decision on the amount of tariff items for guaranteed gas supply for non- household end customers for the period from 1 April 2022 to 30 June 2022.

HERA reminded that, based on the Methodology for Determining the Amount of Tariff Items for Public and Guaranteed Gas Supply, the final gas price for public gas supply service consists of three components – the cost of gas purchase, the cost of gas distribution and the cost of gas supply and is expressed through the tariff item for delivered gas quantity and fixed monthly fee.

The cost of gas purchase reflects the price of gas in the reference gas market and represents a wholesale component in the structure of the final price of gas supply. Applying the appropriate formula from the Methodology, and according to the data from the TTF market, the cost of gas supply for the period from 1 April 2022 to 31 March 2023 is 0.045 euros/kWh), which is an increase of 141 % compared to the cost of gas supply in the period until 31 March 2022.

Given the increase in the cost of gas purchase (by 141 percent), the final gas price would increase by an average of 77 % (excluding VAT), but this increase was ultimately significantly mitigated by Government’s measures.