Međimurje-plin will take over the supply of households using the public gas supply service in the city of Zagreb from Gradska plinara Zagreb-Opskrba at the beginning of October this year, as it offered a price of 0.0095 euros per kilowatt-hour (euro/kWh) in the tender, HERA officially announced on Wednesday evening. The Management Board of the Croatian Energy Regulatory Agency (HERA) made decisions on gas suppliers in the public service obligation at a meeting held on May 29, for the period from October 1, 2024, to September 30, 2027, for 27 gas distribution areas. – The most competitive bidders were selected in the tender based on the criteria of the lowest supply cost and the largest allowed share of each supplier in the public service obligation – states the announcement published by HERA on its website around 11:20 PM. The greatest interest was generated by the largest distribution area, that of Zagreb, where more than 290,000 households use gas. According to data from HERA’s announcement, the company Međimurje-plin was selected as the supplier in the public service obligation for the distribution area of Gradska plinara Zagreb from the beginning of October until September 30, 2027, with a proposed price of 0.0095 euros/kWh. This is a lower price than that offered by Gradska plinara Zagreb-Opskrba, which, as stated by Zagreb Mayor Tomislav Tomašević in the afternoon, was 0.0102 euros/kWh. – GPZO presented itself as a responsible supplier, that is, for its supply area, namely the city of Zagreb, with the same business strategy, which is to operate at the point of covering its costs, that is, to operate at a positive zero because it is important not to create new losses, as we remind that GPZO has accumulated a loss of 70 million euros due to the signing of that detrimental contract for business users signed by the management of the previous government on my second working day as mayor – said Tomašević at a press conference. HERA reminds in the announcement that gas supply is ensured through three possible types of service – public supply service, market supply service, or guaranteed gas supply. The public gas supply service is a service that ensures that at least one supplier is obliged to ensure gas supply for the category of household customers. Therefore, the Gas Market Act (Article 59) stipulates that HERA conducts a tender for the selection of suppliers in the public gas supply obligation. – Međimurje-plin does not have separate supply and distribution; it is in one company. In contrast, the city of Zagreb has about 18 companies and subsidiaries within the Holding, and Gradska plinara Zagreb was divided into two companies in 2008. To make matters paradoxical, under the conditions of this tender, Međimurje Plin cannot supply gas in its area because HERA announced the tender in such a way that if you win Zagreb, you cannot win any other area. That company made the most favorable offer in its area, and there it will lose gas supply. Zagreb will not be able to supply gas in its area, and they will not in their area. What kind of tender is that? Where does that happen anywhere in Europe – added Tomašević. Selected suppliers must deliver contracts to customers by the end of October HERA also emphasizes that selected suppliers are obliged to ‘deliver a contract for the public gas supply obligation to all end customers using the public gas supply service for conclusion by no later than October 31, 2024, along with the terms of the supplier’s contract in the public service obligation and inform end customers about the new circumstances related to the determination of the supplier in the public service obligation for the period from October 1, 2024, to September 30, 2027.’ – This also means new employment, opening an office in Zagreb. We will also provide the opportunity for cooperation with the existing Gradska plinara Zagreb-Opskrba regarding staffing solutions, if there are any wishes from their side. We have secured gas, but in any case, we will compensate for the missing difference. We are already in negotiations – said Nenad Hranilović, CEO of Međimurje-plin, for HRT. He assured that Zagreb residents can be confident that they will have a safe and reliable gas supply, and also that they will have it at favorable prices. HERA also emphasizes that all registered gas suppliers can offer market contracts to end customers in all distribution areas under market conditions, which means that suppliers who were not selected in the public gas supply tender can also participate in further gas supply. – All end customers in the household category have the right to choose whether they want to purchase gas under regulated conditions from the supplier in the public service obligation or freely on the market from any gas supplier. The gas supplier, in accordance with the Gas Market Act and the General Terms of Gas Supply, must ensure that end customers in the household category receive all relevant information based on which they can independently conclude which gas supply service – within the public service or market service – is more favorable for them – it is emphasized in the announcement. HERA announces that, in order to better inform end customers regarding the selection of gas suppliers, it will also publish and launch a web application ‘Gas Price Comparison Tool’. The application will allow for a more transparent comparison of available market offers and gas supply conditions from suppliers in the Republic of Croatia, as well as easier and simpler decision-making regarding the choice of gas supplier, as well as access to contacts of gas suppliers, the announcement states. HERA also published a table of selected suppliers in the public service obligation for the period from October 1, 2024, to September 30, 2027, with the amounts of gas supply costs (excluding VAT), by distribution areas. E.ON Gas supplier in the most distribution areas According to that table, the Zagreb company E.ON Gas will be the supplier in the public service obligation in the most distribution areas, nine of them – Koprivnica’s E.ON Gas Distribution (supply cost 0.0089 euros/kWh), Gradska plinara Bjelovar (0.0091 euros/kWh), Ivaplin (0.0091 euros/kWh), Komunalije-plin from Đurđevac (0.0093 euros/kWh), the company Plin based in Garešnica (0.0092 euros/kWh), Plin Vrbovec (0.0088 euros/kWh), Plinkoma from Pitomača (0.0090 euros/kWh), Radnik-plina from Križevci (0.0089 euros/kWh), and it will also take over that obligation in the distribution area of Međimurje-plin (supply cost 0.0087 euros/kWh).
Međimurje-plin takes over: GPZ will no longer supply gas to Zagreb residents after 162 years
The Varaždin Termoplin and the Zabok Zagorski metalac will be suppliers in three distribution areas each – Termoplin in its Varaždin area (0.0079 euros/kWh), and in the distribution areas of Ivkom-plin (0.0079 euros/kWh) and Zelina-plin (0.0085 euros/kWh), while Zagorski metalac will be in the distribution areas of Zagorski metalac, Humplin (Hum na Sutli), and Zelenjak gas (Klanjec), for which it offered the same supply cost of 0.0079 euros/kWh.
The companies HEP-Gas and the Gas Company of Eastern Slavonia will be suppliers in the public service obligation in two distribution areas each from October – HEP-Gas in its distribution area HEP-Gas (Osijek) and Papuk gas (Orahovica) and for both it offered a supply cost of 0.0086 euros/kWh, while the Gas Company of Eastern Slavonia in its distribution area (0.0079 euros/kWh) and the distribution area Brod-gas (0.0085 euros/kWh).
For the supplier in the distribution area Čaplin, the Čazma company Komunalije was selected with a supply cost of 0.0084 euros/kWh, in the distribution area Dukom gas the same company with a supply cost of 0.0075 euros/kWh, and in the Rijeka area from October, the supplier in the public service obligation will be the company Energo with a supply cost of 0.0080 euros/kWh.
The supplier in the public service obligation in the distribution area Energo Metan will be the Samobor Energo Metan (0.0084 euros/kWh), and in the distribution area EVN Croatia Gas the same company (0.0068 euros/kWh).
In the distribution area Plin Konjščina, the supplier will be that company (0.0079 euros/kWh), and in the area of the Pula Gas Company also the same company (0.0078 euros/kWh).
‘GPZ will continue to distribute gas in Zagreb’
This is the second, repeated tender for the selection of suppliers in the public service obligation for the period from October 1, 2024, to September 30, 2027.
The first tender was conducted from March 22 to April 19, and on April 24, it was canceled by the Management Board of HERA, explaining that the analysis of the received offers ‘indicated the risk of a possible significant increase in market concentration in the segment of public gas supply, as well as possible related problems in the security of gas supply’.
The repeated tender was conducted from May 16 to May 24, and it regulated, in addition to the basic criterion of the lowest price, additional and final criteria, as well as the criterion of the largest allowed share of each supplier in the public service obligation.
The basic criterion remains the lowest cost of gas supply, and the tender established the highest cost of supply for the period from October 1, 2024, to September 30, 2027, at 0.0105 euros per kilowatt-hour (euros/kWh), excluding VAT.
– Gradska plinara Zagreb will continue to distribute gas to Zagreb. We have the infrastructure. Gradska plinara Zagreb owns the entire infrastructure. All pipes will remain the same, meters, only what will be on the bill will change. And we will use all possible measures to overturn this decision – concluded Tomašević at the press conference.
