Voice of Entrepreneurs Warns: Due to Rising Electricity and Product Prices, Entrepreneurs Will Struggle to Compete in the Market

The Association Voice of Entrepreneurs has expressed concern over the 40 percent increase in electricity prices and the negative impact it could have on entrepreneurs and their competitiveness in the market, therefore we convey their opinion in full:

"Severe droughts and increased CO2 fees have contributed to the rise in electricity prices in the European market, which negatively reflects on the entire entrepreneurship sector. For Croatian entrepreneurs, the price of electricity has risen by more than 40 percent,  and it is expected that the increase could be up to 60 percent. Companies that have long-term contracts with suppliers may not feel the difference immediately, but many entrepreneurs have already had their contracts expire or are about to expire very soon. Those entrepreneurs who find themselves in an unavoidable situation could expect difficulties in raising the prices of their products because their competitors may have contracts with suppliers for another year or two. 

The Association Voice of Entrepreneurs hereby expresses concern for the competitiveness of our entrepreneurs in the foreign market. Namely, it is uncertain whether the price increases will be the same in neighboring countries that are not EU members, such as Bosnia and Herzegovina and Serbia. It should also be noted that entrepreneurs already pay electricity at higher rates than citizens, so any additional increase is absolutely unacceptable. This only encourages an anti-entrepreneurial climate that hinders the development of the entire economy, ultimately resulting in those who create value in this country being the most disadvantaged. Additional increases in fees and levies are the last thing Croatian entrepreneurs need after the difficult period we have been through, as well as in these still uncertain times.

The Association Voice of Entrepreneurs believes that instead of price increases, significant non-repayable funds from EU funds for renewable energy sources should be made available, i.e., that those companies that are able should start building solar panels so that Croatian companies can be more competitive in the market. The problem is that this year’s call for EU funds for renewable energy sources attracted six times more companies than there are funds available.  It is urgently necessary to find capacities for renewable energy sources to enable all entrepreneurs to obtain non-repayable funds for the installation of solar panels.

In addition, we must also remind of last year’s scandal involving wind farms in which former state secretary Josipa Rimac participated and question what role these and similar illegal political games and favoritism played in the increase of electricity prices. In a scandal worth almost two billion kuna, Rimac arranged the purchase of electricity for the company C.E.M.P. at privileged prices, using her influence to allow that company to sell energy to the Croatian Energy Market Operator (HROTE) at a much higher price than the market price.

– It is shameful behavior from the Government that publicly boasts about GDP and measures for employees while trying to create an illusion of concern for the economy, and in such a perfidious way literally destroys entrepreneurship and manufacturing activities. All other EU countries have cheaper electricity for the economy and more expensive for citizens, while here it is the opposite! It is sad that Croatia, despite its fantastic energy potential, is in such a catastrophic energy state, which we can primarily thank incompetent and corrupt political structures and  unfavorable contractual prices for energy purchases. Let us not forget the wind farm scandal and other scandals! And after all that, the price of electricity for entrepreneurs is increased by 40 percent, which is shameful! This increase in electricity prices will result in an increase in the prices of practically everything produced in Croatia – said Dražen Oreščanin, executive director of the Association Voice of Entrepreneurs."

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