Mickoski: AD ESM will not seek higher electricity price, government to try to limit heating rise

Prime Minister Hristijan Mickoski announced that the state-owned company AD ESM will submit an offer to EVN Home at the same electricity price as last year and will not seek an increase, while the government will try to limit any rise in heating costs.

Speaking during a visit to Gazi Baba, Mickoski said AD ESM (formerly ELEM) will participate in the public call by EVN Home with an unchanged price but cautioned he cannot control private suppliers.

"We as the Government, that is AD ESM, on the public call of 'EVN Home' will submit an offer that will be at the same price as last year, so we will not request a price increase. So, as far as the state is concerned, we will try to remain at zero, that is, to have no price increase, but I cannot say that for private entities, which participate with their sovereign policy. There I cannot intervene," he said.

Energy markets under pressure

Mickoski said the government has prepared a business model together with AD ESM and a business plan that aims to keep the electricity price unchanged. He added the plan targets a profit for the company by the end of 2027, but that the model still needs to be tested in practice.

On the wider energy situation, Mickoski described European energy markets as "severely alarming", pointing to offline nuclear units, low water levels and reduced gas stocks. He warned that power exchange prices have reached and exceeded 400–500 euros per megawatt-hour, and that gas has risen again above 90 euros per megawatt-hour after falling to around 80 euros the previous week.

Regarding district heating, Mickoski noted gas is currently about three times more expensive than at the same time last year and said the government will try to prevent an alarming increase, keeping any rise within what citizens can bear. "The price of gas is three times higher than last year's at the same time. However, here we will fight to avoid an alarming price increase, that is, to keep it within something that at a maximum, or rather minimum, can be sustained. And with that we will be a country in Europe with convincingly the lowest prices of diesel and unleaded gasoline, fuels, electricity and heating," he said.

He added the electricity price will remain unchanged until the end of the year and there will be no changes to the tariff blocks, and said the government's priority is protecting living standards while it uses available mechanisms to absorb energy pressure. "Our priority is the protection of standards, but the situation is severe, the situation is alarming and I don't know how long this can be sustained," Mickoski concluded.

Photo: press material from the event