SPP will not increase gas prices despite huge losses

The state-run gas utility SPP, the dominant supplier of households, will not increase gas prices ahead of the general election, ruled the government. Regulator ÚRSO approved a price hike of 4.9% as of January 1, but the government, as the sole shareholder, ordered the BoD to keep prices unchanged. SPP will lose €11m as a result. Since 2004, when the state took over SPP, the company has lost €408m on household gas supplies. Its bet on gas prices turned sour and it increased gas prices less than competitors. It is reporting huge profits, but only thanks to dividends from eustream, gas pipeline operator.

(HN/1)