Ina: Due to regulated gas prices, revenues decrease by approximately 160 million kuna

Ina assessed on Wednesday that the Government’s decision on the gas price at which the company is obliged to sell gas to Hrvatska elektroprivreda (HEP) will have an adverse effect on Ina’s revenues amounting to approximately 160 million kuna over the next year.

“Following today’s adopted decision of the Government on the gas price, which obliges Ina to sell gas to HEP at the new regulated price from April 1, we would like to emphasize that such a Government decision will have an adverse effect on the company’s revenues amounting to approximately 160 million kuna in the next year. This is yet another in a series of unfavorable decisions that have caused serious damage to Ina’s gas business in recent years,” the statement reads.

Ina reminds that the gas price was reduced in April 2014 from 2.20 kuna per cubic meter (kn/m3) to 1.71 kn/m3, last year to 1.59 kn/m3, and by the latest decision it has been reduced to 1.27 kn/m3.

Ina emphasizes that, despite the negative effects of the Government’s decision on the company’s operations, Ina “remains the most reliable gas supplier in the Croatian market.”

“The company believes that market opening and market competition are the most effective ways to further ensure supply security,” concludes the statement from Ina.

The Government on Wednesday made decisions regarding the gas price at which the natural gas producer, i.e., Ina, is obliged to sell gas produced in Croatia to the supplier on the wholesale market, i.e., Hrvatska elektroprivreda (HEP), as well as the decision on the price at which HEP is obliged to sell gas to suppliers in the public service for customers in the household category.

According to these decisions, Ina will be obliged to sell gas produced in Croatia to HEP at a price of 0.1369 kuna per kilowatt-hour (kWh), which is 20.1 percent lower than the current price (0.1715 kuna per kWh), and HEP will sell gas to suppliers in the public service for household gas supply at a price of 0.1734 kuna per kWh, which is 24.2 percent lower than the current price (0.2289 kuna per kWh).

The new, lower prices will apply from April 1 of this year to March 31 of next year, according to the Government’s decisions.

Based on these Government decisions, gas for households is expected to decrease in price by about 18 percent. “For households, we can expect a price reduction of approximately 18 percent, depending on the costs of distributors,” said Minister of Economy Tomislav Panenić.