The Slovenia Times

Some companies to stop supplying gas


Kranj/Velenje/Celje/Ljubljana - Certain companies will soon no longer supply natural gas due to high prices and the energy crisis at large. Such decisions are also a result of suppliers having to adjust their prices in line with a government regulation that capped the price for kilowatt hour of natural gas at EUR 0.073.

At the end of last week, the Kranj-based Domplan notified its clients that it will cease its gas supply as of November. It also terminated its supply contracts as of that date, the newspaper Dnevnik reported on Monday.

The company remains the operator of the natural gas distribution system in the areas of Kranj, Naklo and Šenčur in the north-west of the country.

Domplan is a small private supplier that has been supplying gas since 1992. In the wake of soaring market prices and the government regulation and given the outlook, the company believes that it cannot assume the risks arising from price regulation, Domplan director Saša Krč said as quoted by Dnevnik.

For similar reasons, the Velenje public utility has also announced it will stop supplying gas from October, and energy company Energetika Celje is considering taking the same step in the event the government does not cover the revenue shortfall prompted by the cap.

If the company decides to jettison its gas supply business, it will do so gradually and will inform customers of its intention in timely fashion so that they have sufficient time to get a new supplier, Energetika Celje told the STA.

They noted that so far they had received zero assurances from the government regarding the potential compensation, pointing out that small-sized suppliers had been hit the most.

The government adopted the regulation in mid-August to cap the prices at EUR 0.073 per kilowatt hour of natural gas from September. This is the price excluding tax and other mandatory levies, and the regulation will remain in place for a year, that is until the end of August next year.

For example, at energy company Petrol, a kilowatt hour of natural gas currently costs EUR 0.0788 when it comes to households and small business customers.

The national Energy Agency has said that replacing suppliers can be done very quickly. The procedure is free and simple and can be done by the selected supplier.

"All customers are advised not to put off the start of the procedure, as replacement must take into account the deadlines required to complete it," the agency said.

Backup natural gas supply has not been guaranteed in Slovenia so far, but it is envisioned in changes to the gas supply law. MPs will vote on the bill on Tuesday.


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