Slovak SPP raises gas and electricity prices for households

State-owned gas utility SPP is to raise the average price of natural gas for households by 4.94% as of January 2020 and of electricity — by about 9%, SPP spokesperson Ondrej Sebesta announced. Sebesta explained that when setting the prices for gas supply, the network industry regulator URSO based its decision on the average gas price on the German stock exchange, which was 8.59% higher in the reference period of 12 months from Oct 1, 2018 to Sep 30, 2019, while when setting the prices for electricity supply, the URSO has based its decision on the price of power electricity on the Prague Stock Exchange, which increased by 28% y/y in the reference period, the first half of 2019. According to SPP, the monthly costs for the most economically vulnerable customers will not change unless they increase the consumed volume of gas.

Recall that in December 2018 URSO announced that the price of electricity is to increase by up to 5.6% on average as of January 2020, of gas — by up to 5.67% on average, of heat — by up to 4.7%, while of water and sewage — by up to 1.7%. Industrial producers’ prices have been on decelerating path since May and they increased by only 0.7% y/y in October, but utilities prices continued to grow robustly (by 4.2% y/y) on low base effects. Housing consumer prices have also reported a steady 4% y/y average growth this year.

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