This week, Stredoslovenská energetika, a.s. (SSE) regional electricity distributor has submitted a price proposal regarding the final price of electricity for households for 2007 to the Regulatory Office for Network Industries (RONI).
Although SSE has proposed to raise its distribution fee only by the amount of core inflation (i.e. 1.7 percent), the proposal anticipates approximately a 12.9-percent increase of the final electricity price for households when compared to 2006. The respective increase is caused mainly by a higher price of the so-called energy commodity that SSE purchases from Slovenské elektrárne (SE) electricity producer.
The SSE price proposal expects a raise in distribution fee at a 1.7-percent rate even though the applicable regulatory framework provides for its faster growth. Any further cuts in distribution fees would, in the first place, pose a threat to investments necessary in order to expand and improve the quality of networks, thus endangering the quality of distribution networks and the quality of supply to final customers. The system costs and system service fees are not known yet, however, SSE expects them to remain at a 2006 level. The SSE price proposal for 2007 so far anticipates a higher than 20-percent increase in electricity commodity which represents the main obstacle for attaining acceptable final electricity prices for households, as this increase alone would cause the prices for households to go up by more than 10 percent. The commodity price is not subject to regulation by RONI and the three independent electricity distributors can not affect it either. On that account, according to the submitted proposal, the overall final electricity prices for households will increase by 12.9% on average in 2007.
SSE suggests again to Slovenské elektrárne, a.s. to re-evaluate their price offer in order to set reasonable prices of electricity for households.
The 29th of September 2006 in ®ilina
SSE supplies energy for life and business for almost 700,000 customers - appoximately 30,000 enterpreneurs and organizations and 1,600,000 inhabitans. Our home market is the central Slovakia where we have been engaged for more than 80 years. Building new connections, investing to our new distribution network and supporting public interests we contribute to the further economic development of our region and life level of our inhabitants. SSE is a member of EdF.
Media contact: Ing. Radoslava Gbelská, Director of Marketing and Communication Department,
tel:041/519 2979, gbelska@sse.sk
