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HERA: Government's decision on energy price increases is based in law

ZAGREB, April 30 (Hina) - The Croatian energy regulator HERA said on Monday that the government had made the decision on energy price increases last week based on the procedures for changing energy prices launched two years ago.

"The government made the latest decision to increase energy prices based on the procedures for changing energy prices launched in 2010, and it had the right to do so under the law," HERA said in a statement. "We take this opportunity to stress once again that under the law neither the Ministry of Economy nor the government are bound by HERA's opinion on the process of deciding on energy prices," it added.

The Economy Ministry also said that the decision was made in accordance with the law, stressing that it had met all its procedural obligations. The national electricity board HEP said that it had observed the legal procedure in that regard.

On the other hand, consumer associations and trade unions consider the government's decision questionable.

The Independent Croatian Trade Unions (NHS) is considering a possibility of taking legal action against the government for raising electricity and natural gas prices, claiming that the government did not observe the required procedure that should have preceded the price increases, NHS leader Kresimir Sever told Hina.

Sever said that the government, namely the Ministry of Economy, should have requested HERA's opinion before deciding on the price increases, as had been the case before.

"The government failed to do so, but instead cited HERA's opinion of 2010 which expired on December 31, 2011," Sever said. "After receiving requests from the operators for raising electricity and natural gas prices, the government should have again requested HERA's opinion, but failed to do so," he added.

At its meeting on Friday, the government decided to raise the price of natural gas for households by 22% as of May 1 and the price of electricity by 20%.

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