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Government to subsidize Skopje heating price to prevent higher bills

Government to subsidize Skopje heating price to prevent higher bills
Skopje, 11 January 2022 (MIA) – The Government is set to subsidize the household heating price in Skopje in the amount of 80 percent, whereas the City of Skopje and municipalities in the capital will provide the remaining 20 percent, in order to maintain the heating costs of citizens, Economy Minister Kreshnik Bekteshi told a joint press conference with Energy Regulatory Commission (ERC) president Marko Bislimovski on Tuesday. Minister Bekteshi said the Government, in coordination with institutions in the energy sector and in consultation with the ERC, has proposed to the companies licensed to produce, distribute and supply heating energy that it covers 80 percent of the difference from the current to the real price, whereas the City of Skopje and municipalities in the capital cover the remaining 20 percent, thus ensuring security and stability in supply to beneficiaries. “The Government will transfer the funds to heating operator BEG, meaning that the company will not deliver higher heating bills,” said Bekteshi. He added that the Government support will be valid for the entire year. “The support will be provided for all households in the City of Skopje using the heating network, including Power Plants of North Macedonia (ESM), Skopje-Sever and BEG. According to projections, the Government will allocate approximately EUR 5 million, while the City of Skopje and municipalities will have to earmark EUR 1 million for the entire year,” noted Bekteshi. ERC chief Bislimovski said the Government has demonstrated solidarity so that citizens do not carry the burden of the energy crisis. “The solution is the following: ERC will take a decision on making the heating prices realistic. The Government will largely cover the difference between this real price and the existing one, while the City of Skopje and the municipalities will cover a small portion. This will ensure the required liquidity of BEG, namely its production, distribution and supply. As a result, the household heating costs in the City of Skopje will remain unchanged,” said Bislimovski. He urged heating companies to accept the proposal because it is realistic, it ensures their liquidity, whereas citizens’ costs will not increase.