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Croatia to gradually phase out energy subsidies, raising household bills from November

From 1 November, Croatian households will face higher electricity and heating costs as the government begins phasing out subsidy measures under its ninth support package worth €175 million. The plan seeks to balance assistance for citizens, businesses and institutions with a gradual return to market pricing.

During the subsidy period, the average monthly electricity bill fell by 18.7%, from €50 to €40.65, saving households about €112 annually. Starting November, the average bill will rise to €43.65, a 7.4% increase, and by January 2026 is expected to reach €45.61, still 8.8% below full market prices. This ensures households continue to save around €53 annually, with the measure valued at €28.5 million.

Small and medium-sized enterprises will also see partial subsidy adjustments. For example, a business using 15,000 kWh per year currently pays about €2,740. After changes, monthly costs will rise by €29, or €348 annually. Even so, bills will remain 10.2% below market levels, with households in this category saving around €57 per year.

Gas bills, previously cut 16% from €50 to €42, saved families about €96 annually. From 1 October 2025, the average bill will increase to €46, still 8% below full market price.

Overall, the government’s strategy focuses on a phased return to standard energy prices while maintaining targeted relief to shield households and businesses from the full burden of market rates.

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