Nov. 4 (Bloomberg) -- Slovakia proposed a bill that will allow the administration to veto proposals by the dominant gas company to raise prices for households.

The bill is a response to Slovensky Plynarensky Priemysel AS's proposal to raise gas prices by at least 13 percent from January, Prime Minister Robert Fico said today after a cabinet meeting in Bratislava. Germany's E.ON Ruhrgas AG and France's GDF Suez own 49 percent in the utility and hold a majority on the company's board.

Fico has criticized Slovensky, which makes most of its profit from operating a pipeline transporting Russian gas to Western Europe, for not taking into account living standards in the former communist country. The utility watchdog has already rejected two price increases in the past three months.

The legislation, if approved by parliament, requires pricing proposals by Slovensky and other utilities to be approved by shareholders, Fico said. This will allow the state, which has a 51 percent stake in the gas company, to veto any such proposals made by its board.

To contact the reporter on this story: Radoslav Tomek in Bratislava at rtomek@bloomberg.net.

Last Updated: November 4, 2008 04:25 EST