HEP lowered wholesale gas price by 8.1 percent

HEP lowered wholesale gas price by 8.1 percent

On 14 February Hrvatska elektroprivreda d.d. sent the wholesale gas price notice for the period 1 April 2020 - 31 March 2021 to suppliers in the public service of gas supply. The new price of 0.1825 HRK/kWh represents the 8.1% decrease compared to the current wholesale gas price.

HERA set the reference (maximum) price for the above specified period at which HEP d.d. as the appointed wholesale gas market supplier could sell gas to suppliers in the public service of gas supply. The set price of HRK 0.1924 HRK/kWh represented a decrease of the wholesale price compared to the current one by 3 percent, which would facilitate lowering of the average selling price for households by about 1 percent as of 1 April. Taking into account current favourable gas price trends on the market, the Management Board of HEP d.d. decided to introduce an additional 5.1% decrease of the wholesale gas price.

'Hrvatska elektroprivreda has successfully carried out its role of the wholesale gas market supplier since April 2014, the role entrusted to us first by the Croatian Government and then by HERA. Now, after almost six years of experience in gas wholesale, we can state that we have carried out all the tasks entrusted to us efficiently to the satisfaction of our owner as well as of the gas supplier, and most importantly, to the satisfaction of gas end customers. We can guarantee the retention of a high level of service and security of supply until the end of our wholesale gas supplier appointed period. We are pleased to be able to set a lower price of gas compared to the maximum one set by HERA due to favourable gas market trends and taking into account the projected business results of HEP in the following period.', said Frane Barbarić, President of the Management Board of d.d., pointing out that said decision represents an expression of HEP's corporate responsibility and its contribution to policies and measures of the Croatian Government which aims at the protection and the increase of the standard of living of the Croatian citizens.

A lower wholesale gas price set by HEP d.d. enables suppliers in the public service of gas supply to additionally decrease the selling price of gas for households. The price of gas should lower for the customers of HEP Gas, the company with its seat in Osijek, by 5.2 percent compared to the current one as of 1 April 2020, which would result in the annual gas expense reduction for the customer with the average annual consumption of 15,000 kWh by 243 kuna.