Government to Refund 6 Percent of Gas Charges to Households

Average gas prices for households are set to drop by 3.91 percent as of September, as well as prices of gas supplied to small businesses which are to fall - by 3.7 percent, said head of energy regulator Jozef Holjenčík. As he explained the variable component of gas prices, not the fixed part, will drop. "The Office concluded that an intervention in the pricing environment on the domestic gas market was required because despite the fact that a cap has been set on gas prices and suitable conditions for price setting through free competition have thus been created, prices failed to match sufficiently the falling trend in the price of this commodity on international markets," said Holjenčík.

The Government will return money paid for gas back to people, planning to return €10 to those using gas for heating and between €14-165 to other households, Prime Minister Robert Fico said at a press conference on Wednesday. This is approximately 1.4 million customers of not only the gas utility SPP, but also of alternative suppliers, Fico said adding that the Government will pay them back 6 percent of their annual gas charges. Fico claims the government is thus fulfilling its promise of a double-digit percentage decrease in natural gas prices for households in the years 2015 and 2016. The independent regulator arranged the rest of the reduction said the Prime Minister when it decided this year already twice on a reduction of natural gas prices for households by a total of more than five percent. Thus, the price of gas for households will come down by some 11 percent. The refunds including value added tax will cost the state budget €47 million. Fico claimed that this decision of the Cabinet has become feasible due to good economic results of the gas utility SPP claiming the income has exceed expectations. The Government is majority stakeholder in the company.