SPP shareholders’ meeting turns down management plan for gas price hike

The general assembly of shareholders of gas utility Slovenský Plynárenský Priemysel (SPP) turned down a management proposal to increase natural gas prices for households next year that would have amounted to 13.4 percent on January 1, the SITA newswire wrote.

The general assembly of shareholders of gas utility Slovenský Plynárenský Priemysel (SPP) turned down a management proposal to increase natural gas prices for households next year that would have amounted to 13.4 percent on January 1, the SITA newswire wrote.

“The reason for [proposing] this change is the increase in gas purchase price, which depends on crude oil prices and USD/EUR exchange rate,” SPP informed the SITA newswire. The gas utility underscored that the company now faces more losses due to the decision by its shareholders.

“No company can afford to sell goods below the level of its costs,” pointed out Achim Saul, chairman of SPP’s Board of Directors. He said the company’s losses in regulated gas distribution segments will reach about €80 million in 2010 on the basis of the latest crude oil price and the USD/EUR exchange rate.

SPP stated that the company’s management is attempting to prevent a recurrence of this situation in 2011. The last change in natural gas prices for Slovak households was introduced at the beginning of this year when prices were reduced by 5.13 percent on average.

The Slovak Republic holds a 51-percent stake in SPP through its National Property Fund and the consortium Slovak Gas Holding, composed of E.ON Ruhrgas and GDF SUEZ, controls the remaining 49 percent.

Source: SITA

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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