According to the government, the regulation of retail prices of electricity and gas for households, small business consumers, and protected users and the regulation of electricity prices for small and medium enterprises (SMEs) will be extended until the end of the year.
The existing scheme would have ended in the summer, and the extension will help households and protected users cope with the energy crisis and give SMEs a stable, predictable and competitive environment, Environment, Climate, and Energy Minister Bojan Kumer said on Thursday.
The government decided to extend the measure after analysing the wholesale market at the end of winter showed “uncertainties” warranting a price cap extension.
Financially, the measure is covered by existing earmarks. Up to €350 million has been set aside to compensate energy suppliers, according to Kumer.
For households, the maximum price per megawatt-hour (MWh) is set at €118 for the peak rate, €82 for the off-peak rate and €98 for the single daily tariff.
For protected users, the retail gas price cap for households and distributors of heat for families remains €73 per MWh, and for social service centres, kindergartens, primary schools, health centres and small business customers at €79.
For SMEs, the maximum retail electricity price is capped at €217 per MWh for the peak rate, €155.5 for the off-peak rate and €195 for the flat rate.
It remains to be seen if price regulation for households and small business customers is needed in 2024, as market prices are still higher than capped prices. Kumer expects an exit strategy to be figured out in a month or two.
The situation is, however, different for SMEs, as current wholesale prices are lower than the prices they paid when concluding contracts last year. The government wishes that SMEs would no longer need price regulation next year.
(Eva Horvat | sta.si)
Source: euractiv.com
