Households will pay more for gas and electricity next year

The regulatory authority has released caps for utility prices for 2022.

Illustrative stock photoIllustrative stock photo (Source: TASR)

The expected increase in energy prices for households is coming to fruition. The Office for the Regulation of Network Industries (ÚRSO) published new caps for regulated prices of natural gas and electricity valid as of January 1, 2022. Households will pay more for gas (around €5.50 to €230 per year) while their annual electricity bill will increase by about €47 to €172. The exact bill will depend on what people use these utilities for, i.e. whether they use them only for cooking, or also for water heating and general heating, the Pravda daily wrote.

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In Slovakia, the prices of electricity and natural gas are regulated for households and small enterprises.

Related article Politicians promise to curb electricity price increases for households Read more 

The increase in energy prices was expected, as their wholesale prices on the markets skyrocketed earlier this year for both commodities.

In terms of electricity, the costs of households living in apartments will increase by an average of €3 to €4 a month in 2022. The costs of households that also use electricity for heating and to heat water are expected to increase by some €14 a month. Behind the hike in electricity prices is mainly the higher wholesale price, which accounts for about 40 percent of the end-user price, noted Radoslav Igaz, spokesman of ÚRSO, as cited by the SITA newswire.

Based on the completed price regulation proceedings for the supply of electricity, the regulator states that regulated electricity prices in 2022 will exceed the level of regulated electricity prices in 2020. Compared to 2020, the cost of a common household living in an apartment house will increase by approximately €1 a month and for a household with electric heating by about €11 a month.

“The year 2021 was exceptional in terms of low electricity prices due to the Covid-19 pandemic when prices fell compared to 2020, but we are currently facing profound increases in wholesale electricity prices, mainly due to economic recovery and declining available generation capacity in central Europe,” said Igaz.

The ÚRSO will announce by the end of this year the exact figures after the final completion of all price regulation proceedings concerning individual components of the end-user price of electricity for households for the year 2022.

In terms of gas, regulated prices for 2022 will rise slightly above the level of regulated prices in 2020. In 2021, gas prices were low due to the Covid-19 pandemic.

Households using gas for heating could pay more on average (€9.66 to €19.18 per month) in 2022. Households that use gas just for cooking could pay about €0.46 more per month.

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