The power company HEP has still not submitted a final request for an increase in electricity prices, officials of the state-owned power supplier said on Tuesday when asked by the press about reports in some media that the HEP could request a 22-percent increase in electricity prices and that the government would approve a 15-percent increase.
"The HEP has still not submitted a final request for a price correction, but in the previous period the company made requests that did not materialise. For example, the regulatory agency gave a positive opinion regarding the HEP's request for the correction of the production component from March 2010, but the previous government did not assume responsibility to carry out the necessary measures," the company said in a statement.
It added that its duty was to keep the system stable and that it was possible by providing for its financial stability.
"A price correction is therefore necessary because the circumstances in which the company is doing business are very unfavourable - there has been a drought for 16 consecutive months and in the first quarter hydroelectric power plants saw a 56-percent production drop in relation to the same period of last year. This has led to an increase in the HEP's production costs, caused by higher expenses for fuel used by thermoelectric power plants as well as higher prices of electricity on the market," the HEP said in the statement.
Responding to questions from the press earlier in the day, Economy Minister Radimir Cacic said that electricity prices would go up by more than 13.5 percent, probably in the next month and a half.
