Over 45,000 families in North Macedonia are at risk of being left without heating after the government decided to cap pellet prices at €6.50, a price which wholesalers have refused to sell at.
As winter sets in, the full force of the energy crisis is being felt as costs soar, driving thousands to turn to burning wood and pellets for warmth. But increased demand has pushed prices up considerably.
“We cannot sell at these prices. We are in an absurd situation in which we cannot function. The final result, unfortunately, will be that very soon there will be no pellets on the market”, said Vladimir Stojanovski, chairman of the Biomak association.
Instead, companies have asked for the cap to be raised and the profit margin to be capped at 10% instead.
Meanwhile, the government in Skopje has subsidised families in purchasing pellet stoves with up to €500 per family. Currently, the average family with a stove spends between €240 and €480 a month, but this is set to reach as much as €1,440 at current market prices.
While families will struggle for warmth this winter, companies are getting a helping hand from the state. Those producing basic food items will pay just €80 per megawatt, reducing the cost of products by at least 10%.
“I promised that there will be food, electricity and heating for everyone this winter. With the new government decisions, we provide cheaper electricity, about €80 euros per megawatt hour for companies that produce basic food products” said Prime Minister Dimitar Kovačevski.
One of the government’s measures includes supplying drinking water with electricity at a fixed price of €95 per megawatt hour to help keep water bills low.
(Alice Taylor | Exit.al)
Source: euractiv.com
