Croatia, HEP took over from oil company INA will be 41 euros/ MWh

, SEE Energy News

The Croatian Government decided that the price of natural gas that state-owned power utility HEP took over from oil company INA will be 41 euros/ MWh, thus ensuring gas for 120,000 Croatian citizens who currently do not have gas supply.

Minister of Economy and Sustainable Development Davor Filipovic said that said that the gas priced at 41 euros/MWh will also be directed towards distributors who need to cover their losses, all so that the price for the end users will remain at the same level until 31 March 2023. With this decision, gas will also be directed to hospitals, schools, kindergartens, and a large number of public institutions in order to provide them with gas at affordable prices and for 7,800 households that are part of independent heating systems throughout Croatia.

The Government also passed the Decree on eliminating disturbances on the domestic energy market, and Minister Filipovic reminded that, in mid-September, the Government adopted a decision according to which INA will sell all the gas produced in Croatia to HEP. He pointed out that after that, seven customers were identified who have fixed contracts with INA and which cannot be terminated unilaterally. Therefore, the proposal is to leave those seven customers and their fixed contracts with INA until the end of those contracts. He did not specify who the seven buyers were.

He also pointed out that INA uses part of the gas for its own production, and has two contracts, one with the Italian ENI, and the other with Greek partners. The gas delivered to ENI cannot even physically be directed towards Croatia, so the proposal is to make exceptions in the amendment of the regulation that are negligible in relation to the total amount that HEP will receive from INA.