ZAGREB, Oct 10 (Hina) - The Croatian government on Thursday decided to give up on a decision to raise the price of electricity by nine percent for households. The new tariff system will, however, remain in force.
ZAGREB, Oct 10 (Hina) - The Croatian government on Thursday decided
to give up on a decision to raise the price of electricity by nine
percent for households. The new tariff system will, however, remain
in force. #L#
The government's decision will be implemented by changing the price
of a kilowatt-hour, and the new prices should be known today, Vice-
Premier Goran Granic said.
He added that the permanent monthly charge of 15 kuna would not be
changed.
The decision takes effect on October 1.
Citizens who have received electricity bills this month must pay
them, Granic said.
The new electricity tariff model was adopted by the government at
the end of August and it went into force on September 1.
Despite promises made by the government and the Croatian Power
Industry (HEP) that the rise in electricity prices would not exceed
nine percent, many citizens have received doubled or even higher
bills.
We are lessening the nine percent increase to zero and there is no
increase in the HEP's revenues, Prime Minister Ivica Racan said at
the government session.
Both at the session and after it, Granic said the government had
decided that the HEP should have no revenues from the new tariff
system.
The government wants the public to see its intention to have a
simpler and more just tariff system, he said.
Granic explained that the application of the new tariff model would
mean an increase in price for some consumer categories, especially
those with triple-tariff electricity meters. Since the new tariff
system significantly changes consumer relations, a number of
consumers will have lower bills, while some with double- and
triple-tariff meters will be receiving higher bills, he said.
Since the result of this will be zero revenues for the HEP, the
government is aware that the company will once again be at a loss.
However, the government wants to relay a clear message -- the new
tariff model is not in the function of privatisation or the HEP's
additional profit, but rather contributes to simplicity and
fairness, Granic said.
He said that future decisions on increasing the price of
electricity would be made by a council for regulating the power
industry.
The reform of the tariff system is in the function of one to one and a
half million consumers who will be receiving fairer bills, in
relation to 200,000 to 250,000 people with benefits, Vice-Premier
Slavko Linic said, adding that the new tariff system would also mean
a 200 percent increase in bills for one to 1.2 percent of
consumers.
He added that, however, because of the new tariff system, there was
no basis for increasing prices in the economy.
The government is insisting that the HEP continues with economising
and finish its reorganisation by the end of this year.
Members of the government said that at its last session the Economic
and Social Council had agreed on the establishment of a working
group for analysing the effects of the new tariff system on certain
social categories of citizens, with the aim of helping consumers.
(hina) lml sb