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Entrepreneurs Shut Down Production Due to Rising Electricity and Gas Prices, Government Still Delays Measures

Although Croatia prides itself on having a lower dependence on Russian gas than most European countries, the gas crisis has exploded in recent days. The City Gas Company Zagreb – Supply has announced to entrepreneurs that it will set gas prices monthly and is still seeking guarantees (one thousand euros from small consumers, and double that from large ones). About 8000 entrepreneurs are affected, who have so far been left at the mercy of energy institutions.

This time, they may be helped by the fact that public institutions share their fate: kindergartens, schools, healthcare institutions, as well as all consumers on state and local budgets. However, the state is not stopping operations, unlike the Munja battery factory, which has halted production due to a 450 percent increase in gas prices. The regulator, HERA, is washing its hands. The situation with electricity is even more dramatic. HUP President Damir Zorić reported on Monday that it is the main source of energy for four-fifths of entrepreneurs.

Forty percent of them are currently paying electricity prices that are twice as high, twenty percent three times higher, and the remaining thirty percent of entrepreneurs have faced even quadruple increases. Recently, the President of the Economic Council of the Croatian Chamber of Commerce – Zagreb Chamber Vitomir Klasić warned in Lider that due to the enormous rise in electricity prices, some manufacturing companies are seriously considering shutting down production. The government is not particularly impressed by these facts.

After all, the more expensive it is, the better for the state – it collects more VAT. However, VAT was reduced on some categories of products last spring, and interventions in fuel prices are ongoing. According to Prime Minister Plenković, the government has ideas on how to sustainably and long-term solve the problem of rising energy prices, but this model will only be presented in a few weeks. And while Croatian ministers are still recounting their summer vacation adventures, other countries are already significantly helping their citizens and entrepreneurs.