Gas shock in Slovakia: Largest gas company will increase prices for households by 76%

High energy prices are exacerbating inflation in Slovakia

editor: REMIX NEWS
author: Czech News Agency

For households in Slovakia, natural gas prices will increase by a total of 76 percent over the next four years if they enter a long-term contract with the state gasworks SPP, the largest gas supplier in the country.

The highest price hike, by about a third, will occur in 2023, Slovakia’s Economy Minister Richard Sulík said on Monday, adding that the state supports the installation of alternative energy sources, but the limited number of equipment suppliers and installation companies is slowing down the use of subsidies.

“SPP will not earn anything from it; SPP will operate at a loss for the first two years,” said Sulík.

If consumers do not agree to a long-term contract with SPP, they will probably pay more than 150 percent for gas next year, the minister warned, claiming the second largest supplier on the market will also choose a similar procedure as SPP.

High energy prices are contributing to a faster inflation rate in Slovakia and other countries. Regulated energy prices for households in Slovakia usually change once a year; this year, the price of gas has risen by about a fifth, after becoming cheaper last year.

Limited number of suppliers is slowing down the process

Electricity should not increase in price for most households in Slovakia following a signed memorandum by Slovenské elektrárne, the largest electricity producer in the country, to supply part of its production to the market at a discounted price.

Slovakia previously increased subsidies for households for renewable energy sources to €45 million, which is three times the initial level. Furthermore, €23 million from the additional package of funds remains available. The allocation date for a heat pump, solar collectors, photovoltaic panels, and a biomass boiler is not decided by the registration deadline but by the installation of the equipment.

“We have a limited number of suppliers of these devices, and a limited number of those who can install them. Anyone who submits a contract by the end of the year will receive support,” said Sulík.

Money from European funds is also earmarked for subsidies. For this reason, homeowners from the Bratislava region, where the standard of living is the highest in Slovakia, cannot apply for subsidies.

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