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The Croatian Electric Authority (HEP) sent an annex of its contract to preferred customers, more specifically companies that have directly negotiated the amount and price of electricity, informing them that the management made a decision to increase the price by 5.3%.

The new prices are another strike against the industries that is already suffering from the economic crisis. In its effort to consolidate their business, it could be expected that HEP will make use of the legislatative changes that allow the market to dictate the price, not politics. Considering that the electricity prices are significantly higher in the surrounding countries, we need to be prepared that HEP will systematically raise prices to match the market conditions. HEP did not want to comment on this issue, adding that these contracts made with each user individually. “We have new contracts, but cannot comment on the prices as it is a business secret”, says Radomir Milišić, the HEP spokesman. Still, this price increase that came in effect on July, 1 will not equally reflect on each of the users. The price of electricity is individually set and it depends on several factors. The best price was given to the biggest users with the least number of connection. Additionally, those with consistant usage throughout the year receive favorable rates. Another factor is the type of voltage they use. This is why the Croatian railways may end up with higher electricity expenditures as they have hundreds of electricity connection.