Power utility Slovenske elektrarne will provide electricity at cheaper prices to Slovak households until 2027. The Government and the utility management arrived at a deal on Thursday to extend the memorandum to that effect by an additional three years, its general director Branislav Strycek announced at a press conference on the same day. The memorandum of understanding between the Economy Ministry and Slovenske Elektrarne, inked in February 2022, was due to stay in effect until the end of 2023. Under the latest addendum, the power utility will supply electricity at an advantageous price until 2027, although Economy Minister Karel Hirman confirmed that the price will slightly increase over the years, in response to market indexes. "The price for households will be significantly more advantageous than any classic commercial contract, however," the minister assured the public.
The Economy Ministry has also launched work on more advantageous electricity prices for other categories of customers. Hirman pointed out that this process is more challenging and delicate, however, as it will involve the issue of state aid. "We must draft an implementation agreement that will have a chance of passing the notification process in Brussels in the next few months," he added.
The addendum to the memorandum signed between the majority shareholder of power utility Slovenske elektrarne (SE), Slovak Power Holding, and the Economy and Finance Ministries will provide households with electricity for a long period under predictable and extremely favourable conditions, SE general director Branislav Strycek said after the signing of the addendum to the memorandum on the implementation of extraordinary measures to eliminate the impact of high electricity prices.
The government committed in the memorandum that in 2023-2027 it would not develop an initiative or support any initiative towards SE aimed at the introduction, increase or tightening of any new tax, levy, fee, specific payment or regulation, thus ensuring a stable regulatory environment for SE. The agreement between the contracting parties will be signed after the European Commission and the SE statutory bodies approve it.
According to the extended memorandum, SE is to supply households with 5.5 terawatt hours each year. In 2025, they will supply electricity at a price of €66.70 per megawatt hour, in 2026 at €72.70 and in 2027 at €79.30 per megawatt hour. It represents further aid beyond the originally agreed volume of 6.15 terawatt hours per year for the period of 2023 and 2024 at a price of €61.20 per megawatt hour, stated Strycek.
Source: TASR
