The Voice of Entrepreneurs (UGP) business association issued a press release on Wednesday saying that businesses that are facing higher electricity prices due to the expiry of their contracts with suppliers should be helped with EU-funded state aid, state agency Hina reported.

In a statement issued on Wednesday, the UGP said that droughts and increased fees for CO2 emissions had contributed to an increase in electricity prices on the European market, which was having a negative impact on the entire business sector.

For Croatian businesses, electricity prices have gone up by more than 40 percent so far, and they could go up by as much as 60 percent, the UGP said.

“Businesses that have long-term contracts with energy suppliers might not feel any difference right away, but the contracts of many businesses have expired or will expire very soon and they can expect electricity prices to go up,” UGP warned, noting that “those businesses could increase the prices of their products.”

The UGP is also concerned about the competitiveness of Croatian businesses in foreign markets, noting that it is not certain that electricity price hikes will be the same in non-EU countries that are Croatia’s neighbours, like Bosnia and Herzegovina, and Serbia.

Businesses are already paying higher electricity prices than households, and additional increases in those prices is “unacceptable,”. UGP said.

“Instead of increasing energy prices, one should secure EU grants for renewable energy sources so that businesses that can do so can start installing solar panels,” the UGP said.