Slovenian utilities to cease gas supplies following price cut

Two Slovenian utilities are preparing to halt gas supplies to customers following the government's introduction of a cap of €0.073/KWh ($0.073/KWh) on the price that can be charged to households and businesses.

Gas supplies from Kranje-based utility Domplan and Velenje-headquartered Komunalno will be suspended this winter, with all customer contracts annulled. In a bulletin on its official website, Domplan blamed a lack of state financing to cover losses from the price reduction.

"As suppliers we do not have any guarantees from the state regarding compensation for damages due to the regulated price," Domplan said, noting gas supplies would end from November 1.

Another Slovenian utility, Energetika Celje, is also pressing for state funding to cover revenue losses, according to Slovenian news site Telegraf. Municipal supplier Komunalno Velenje has already confirmed it will suspend natural gas delivery from October 1.

Slovenia moved in July to cap gas prices for households and small businesses at €0.073/KWh. The government has also asked Slovenia's largest gas supplier, Plinovodi, to devise a strategy for halting all Russian gas imports within the next three years.