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HEP: NEW PRICES MEAN COMPANY WILL OPERATE WITH LOSSES

ZAGREB, Oct 11 (Hina) - According to the latest tariff models, households with single-tariff electricity meters will pay 55 lipa for one kilowatt-hour of electricity, not including VAT, while households with double-tariff meters will pay 58 lipa per kilowatt-hour of more expensive electricity and 30 lipa for cheaper, night consumption, Croatian Power Industry (HEP) officials said on Friday.
ZAGREB, Oct 11 (Hina) - According to the latest tariff models, households with single-tariff electricity meters will pay 55 lipa for one kilowatt-hour of electricity, not including VAT, while households with double-tariff meters will pay 58 lipa per kilowatt- hour of more expensive electricity and 30 lipa for cheaper, night consumption, Croatian Power Industry (HEP) officials said on Friday. #L# The new prices were determined after yesterday's session of the government, which decided to support the new tariff system but cancelled a decision which on September 1 increased the price of electricity for households by nine percent on average. The HEP has therefore changed the price of electricity for households, and since enterprises using low-voltage electricity are in that category as well, the price will drop for them, too. The permanent monthly charge of 15 kuna was not changed, and VAT is to be added to the bills. September 1 is the date of introduction of the new, lower prices, HEP management board director Ivo Covic told reporters. The national power supplier has called on consumers to pay the bills they have received, and Covic announced that the status of electricity meters would be checked once again by the end of the year, after which the bills would be corrected. Those citizens who have received much higher bills than expected and think they are paying too much for electricity were advised to contact the nearest HEP office and have their bills corrected. The decision the government made yesterday does not change anything in the principles of the new tariff system, which is simpler, more transparent, easier to implement and enables everyone ?o pay electricity at the same price and according to consumption, HEP officials said. Lowering the price of one kilowatt-hour of electricity will increase the number of consumers whose electricity costs will drop, but some consumers will indeed receive higher bills, particularly those with triple-tariff meters. HEP officials say the government's decision means that the company will be left without a planned annual revenue increase of 380 million kuna (around EUR51.49 million) from households and enterprises and continue operating with losses as well as that it will have to reconsider planned investments. A member of the company's finance sector, Darko Belic, said the company could end this year with a loss of 500 million kuna (around EUR67.75 million). (hina) rml sb

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