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Croatia’s electricity costs rise: HERA approves network fee increase for 2025

The price of electricity in Croatia has been steadily increasing since the start of the year, with household electricity costs rising by approximately 10% in recent months. However, a decision made by the Croatian Energy Regulatory Agency (HERA) on 9 December regarding changes to electricity transmission and distribution fees was not publicly disclosed.

During the 9 December session, HERA approved an increase in network fees by 12% for all customer categories, effective from 1 January 2025. This change will lead to a 3.7% increase in the average annual electricity bill for households, which is about 10% higher compared to rates before 1 November 2024. For example, a household consuming 3,000 kWh annually will face an additional cost of less than 4 euros per month. Despite this adjustment, state-owned electricity provider HEP has stated that electricity prices for Croatian households will remain among the lowest in the European Union.

Since 1 November 2024, households have already been experiencing a slight increase of around 2 euros per month on their electricity bills. Institutions such as hospitals, schools, and kindergartens, along with associations and small businesses with semi-annual consumption of up to 250 MWh, began facing similar tariff increases on 1 October 2024. For these entities, the average increase was 6.8% for institutions and 6.4% for small businesses.

Consumers on a six-month billing cycle will receive an adjusted bill in the spring, which will account for consumption under three different rates: before 1 November 2024 (one rate), from 1 November to 31 December 2024 (second rate), and after 1 January 2025 (third rate). However, customers who submit meter readings through one of five available methods will avoid receiving an estimated bill.

The 12% cap on network fee increases was set by the Croatian Government to prevent disturbances in the energy market. This regulation simplified the decision-making process for HERA, as rejecting an increase above this limit would have been difficult to justify.

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