BRATISLAVA, October 17, (WEBNOVINY) — Prime Minister Robert Fico shared with journalists his opinion Wednesday that prices of natural gas for households should not increase at all. “I think that for the Slovak public and the development of inflation it would be very correct if no increase in gas prices occurs. But this is in the hands of the regulatory office,” he added.
Fico informed on Tuesday that Slovak gas utility SPP plans to submit two price proposals to the Regulatory Office for Network Industries (URSO) to increase natural gas prices for households from the beginning of next year. „We see absolutely no reason for minority shareholders to propose such a disproportionate increase in natural gas prices for households. We cannot respect such arrogant behavior of German and French shareholders,“ said Fico. According to Prime Minister Fico, SPP is again justifying the need to increase gas prices for households by a long-term loss of this regulated market segment.
Prime Minister Fico let the minority shareholders in SPP know on Tuesday that unless the board of directors withdraws its price proposals, the Cabinet at its session on Wednesday will not discuss the proposed sale of Slovak Gas Holding BV, through which GDF Suez and E.ON Ruhrgas own a 49-percent stake in SPP.
„By 10:00 a.m. on Wednesday I want to have a written statement that they are withdrawing all price proposals. If I don’t receive such written statement, tomorrow the Cabinet will not discuss its approval of the transfer of the shares. If they care about this business with the Czech company, they will have to send this statement,“ said Fico.
On Wednesday, the Cabinet really fulfilled Fico’s threat from the previous day and withdrew the material from its agenda. Foreign shareholders in SPP are negotiating the sale of its share in the company to the Czech firm EPH (Energy and Industrial Holding). Since the Slovak government has an option to the shares, it can interfere in the transaction.
Economy Minister Tomas Malatinsky explained that though foreign shareholders reacted to the prime minister’s call, it was not a sufficient reaction. „We had expected from the shareholders that they will issue a declaration that at their general meeting they will withdraw the price proposals and that a proposal will be submitted that would be based on a consensus,“ Malatinsky stated after the Cabinet’s session.
Natural gas prices for households in Slovakia changed twice this year. From the beginning of the year, the regulator increased the maximum average gas price by 5.53 percent. Then in late February, the regulator decided on its own initiative to reduce the maximum gas prices for households, by 5.24 percent. The regulator decided to lower the price after an annex was signed to a long-term agreement between SPP and Gazprom that lowered the purchase price of Russian natural gas. SPP wanted to raise gas prices in the summer on average by around 17 percent. The regulatory authority, however, rejected the new price proposal.
SITA