No gas price hike this year as SPP’s proposal is rejected
The main Slovak gas utility Slovensky plynarensky priemysel (SPP) has not managed to increase gas prices for several years now, and now it has had its latest request for an increase in gas prices for households and heating companies producing for households rejected, as well.
The national regulatory authority URSO rejected the latest proposal from SPP to increase gas prices for households by 7.5% to help cover the losses that the company claims it is generating in the regulated household segment. Likewise, the regulator also did not endorse the 10.5% hike that the gas utility requested for gas used by heating companies to produce heat for households. As a result, the company expects to generate another EUR 80 million loss this year in this customer segment.
The gas company wanted the price hikes to take effect from 1 November, but URSO has declared that SPP did not submit all the necessary documentation even though it was informed about it and challenged to supplement its application. These documents included invoices from all its suppliers for the purchase of gas. The regulator also did not agree with the projected USD/EUR exchange rate in the calculation.
The company is perturbed by the situation, as it claims to have suffered losses in the households segment in the past few years. “A contorted regulatory environment and the complete unpredictability of URSO’s actions have produced a serious problem for SPP. The company will appeal against the decision and apply all available legal means to protect its interests” announced SPP.