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Croatia Extends Gas Subsidy Program to Mitigate Household Costs

The Croatian government has announced an extension of its gas subsidy program, aimed at supporting households in the face of rising energy prices. This initiative will remain active until the end of September 2026, providing financial relief by offsetting a portion of gas supply costs for consumers.

As part of this extended scheme, compensation for suppliers will be determined based on distribution zones. This approach allows for reimbursement that corresponds to the difference between prevailing market rates and regulated pricing levels. Authorities have indicated that without this intervention, household gas prices could potentially escalate by as much as 7.6%, underscoring the critical nature of ongoing government support.

Funding for the subsidy program will be sourced from the Environmental Protection and Energy Efficiency Fund, supplemented by revenue generated from the sale of emission allowances. These financial resources are designated to ensure prompt payments to gas suppliers, thus sustaining the operational integrity of the subsidy mechanism.

Government officials have reiterated their commitment to monitor developments in the energy market closely. They remain prepared to implement additional measures should market conditions warrant such actions. The primary objective remains to ensure stability in supply while safeguarding consumers from the persistent volatility seen in energy pricing.

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