Cacic recalled that two years ago the Croatian Energy Regulatory Agency (HERA) approved an increase of electricity prices of some 13.5 percent which had not materialised, adding that since in the meantime the price of energy in electricity production had generally increased, there was no doubt that electricity prices would go up and that calculations were being made.

Cacic made the statement while addressing reporters before the start of a round table debate on modern approaches to dispute settlement, organised by his Croatian People's Party (HNS).

According to the media, the state-owned power supplier HEP will ask the Economy Ministry and the government for permission to increase electricity prices by 22 percent, and the government is expected to approve a 15-percent increase.

Asked if the government could somehow cushion the impact of the planned electricity price hike on the citizens' living standards, Cacic said no government could influence global energy prices.

During a visit to Koprivnica today, Labour and Pension System Minister Mirando Mrsic commented on the announced increase of electricity prices, saying that there was simply no other solution, that it would affect the citizens' living standards, but that the most vulnerable social groups would be protected.

"At the moment, the national economy is standing still, and everything we are doing, we are doing to kick-start it. When that happens, the number of jobs will increase and unemployment will eventually decline. The government has set aside budgetary funds for social measures. Despite budget cuts, the funds intended for social benefits, pensioners and the jobless have been increased. This means that we have envisaged funds to cushion the impact (of the electricity price hike)," Mrsic said when asked about the planned increase of electricity prices.

Concrete measures to alleviate the effect of the price hike on the most vulnerable social groups are in the remit of Social Policy and Youth Minister Milanka Opacic, said Mrsic.

The Independent Croatian Trade Unions (NHS) today expressed concern about the announced increase of electricity prices, calling on Prime Minister Zoran Milanovic to prevent it.

Regardless of the fact that many economists and energy experts have warned for years that prices of energy products cannot and must not be a social category, we cannot ignore the fact that in Croatia prices of energy products indeed are and should remain a social category until conditions are created to increase the citizens' living standards, which would make it easier for them to pay higher utility bills, the NHS said.

The trade union federation said the planned increase of electricity prices would lead to a chain reaction and an increase in prices of other goods and services.