HUP: The increase in the price of electricity is a new blow to the economy
The Croatian Employers’ Association is disappointed with the hasty decision to increase the fee for renewable energy sources, which will increase the price of companies by as much as 15 percent.The increase in the price of electricity is a new blow to the economy and calls into question the sincerity of the Government’s announcements of its intention to reduce operating costs. Although HUP has repeatedly warned of the negative effect that rising electricity prices will have on operating costs and competitiveness of companies, demanding that fees for energy from renewable sources be introduced and increased gradually, the Ministry and Government ignored our warnings and suggestions.Apart from the new increase in costs, making this decision is also problematic from the aspect of predictability of business conditions. Again, conditions change from today to tomorrow without a reasonable deadline for preparations and adjustments. HUP does not question the obligation and need for energy production from renewable sources, but considers that the way in which Croatian governments have made relevant decisions in this regard is problematic.The new blow to the economy, whose VAT rates have not been reduced to dampen rising electricity prices, is not just a problem for employers but directly for citizens – without cost relief and further rising business costs, there is no room for wage increases, new investment and stronger economic growth.