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Household heating prices may decrease in July 2009

Households might pay lower heating prices in the second half of this year. The Slovak Association of Heat Producers (SZVT) says it will depend on the development of natural gas prices, the SITA newswire wrote.

Households might pay lower heating prices in the second half of this year. The Slovak Association of Heat Producers (SZVT) says it will depend on the development of natural gas prices, the SITA newswire wrote.

Prices of natural gas used for supplying households with heat still is fully regulated by the regulatory authority. Statements of Economy Minister Lubomir Jahnatek and Prime Minister Robert Fico indicate that if the current price development on global markets does not change, gas prices for household could be lower as of July 1 of this year.

Heating companies are evaluating the current heating season, which is coming to an end. Last year was colder than 2007 but lower sales and demand for heat have been caused by gradual implementation of energy saving measures. The impact of these measures carried out at buildings accounts for roughly five percent,said SZVT.

The actual price of heat consists of a fixed item (30 percent) and a variable item (70 percent). The variable item covers costs directly related to the generation output, especially fuel costs.

For heat made by natural gas, the prices depend on regulation of natural gas prices, explained the association. Beginning in January 1 of 2009 heat prices based on natural gas as the fuel decreased by 5.5 percent for households, on average, compared with average prices for last year. But price decreases of heat produced on the basis of natural gas may vary in individual regions, SZVT said. SITA

Compiled by Zuzana Vilikovská from press reports
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