Slovak SPP seeks gas price hike despite rejection

BRATISLAVA, Sept 4 (Reuters) - Slovakia's gas monopoly SPP said on Thursday it was seeking an average 19.8 percent price increase for households, effective from November, despite the government's rejection of a request for a smaller rise in August.

Leftist Prime Minister Robert Fico's government has said it would expropriate the property of foreign-owned utilities if they unjustifiably tried to charge consumers too much.

Slovensky Plynarensky Priemysel, run by a consortium of France's GDF Suez (GSZ.PA) and Germany's E.ON EONG.DE through a combined 49 percent stake, cited higher-than-anticipated oil prices and the strengthening dollar as reasons for the rise. The gas firm, which is majority owned by the state, had originally requested a 15.9 percent increase in an appeal that was rejected by the state regulator. SPP said prices could not be kept flat due to higher gas prices from Russia.

"SPP must request a change in delivery prices of natural gas for households by an average 19.8 percent, effective from Nov. 3, 2008, the nearest-possible date reflecting all relevant legal terms," the gas monopoly wrote in a statement.

Shielding people from higher energy costs was among key promises that helped Fico win a 2006 election. He has also threatened retailers with criminal charges if they try to exploit customers when Slovakia adopts the euro next year.

The gas monopoly said on Thursday that oil prices had risen 50 percent above expectations and that, even with the strong crown currency, which is 10 percent stronger against the euro on the year, it was not able to compensate.

State energy market regulator URSO denied SPP's request in August to raise prices from October, saying the company had failed to justify "a significant change in economic variables" and it had not "backed (the request) up with relevant arguments". [ID:nLQ363774].

This year, Fico's government approved a measure boosting the powers of the regulator as it wants to limit hikes in prices of electricity and natural gas, preventing jumps in inflation ahead of euro zone entry.

The main utilities have opposed tighter regulation, saying the government's efforts are limiting market competition. (Reporting by Martin Santa, editing by Anthony Barker)