Commenting on possible lawsuits by commercial users due to an enormous hike in gas bills, Zagreb Mayor Tomislav Tomasevic on Thursday said that that is a potential risk for the City Gasworks but that users have been advised that gas cannot be delivered at the old price any longer.

“That is a potential risk, but commercial users have been clearly informed that due to prices on the global market, Gradska Plinara Zagreb – Opskrba is no longer be able to supply gas at the former price, after which some users have cancelled their contracts and transferred to other providers,” Tomasevic told reporters.

Fixed-price contracts with gas buyers were signed last spring, while contracts with suppliers based on variable prices were signed in June, which led to an untenable situation for Gradska Plinara Zagreb – Opskrba, while its competitors’ prices are unfortunately just as high, he said.

That is partially the fault of the former management in the company, but on the other hand, these are objective circumstances because the price of gas has gone up throughout the EU.

The Gradska Plinara Zagreb – Opskrba gas company has debts of hundreds of millions of kuna dating back to last year. These losses have been taken into account regarding the City’s business plan for this year, however, that situation cannot continue, said Tomasevic.

Support to buffer gas price hike for citizens

The Zagreb Holding conglomerate’s management is talking with businesses while the city administration is talking with the government to find a solution that will be least problematic for everyone, said Tomasevic.

Commenting on a proposal by Economy Minister Tomislav Coric for the HEP national electricity provider to take over Gradska Plinara Zagreb – Opskrba, Tomasevic said that that was only one of the options and that there are other solutions that can be discussed.

As far as the price of gas for households is concerned, that is not in the remit of the local government but the state, he added.

“I hope and expect the state to come out with a package to absorb the hike that can be expected if no intervention in the price of gas for citizens occurs,” said Tomasevic.