Shareholders of Slovenské elektrárne agree with the government to mitigate the impact of rising electricity prices

17.02.2022
Možnosti zdieľania:

The temporary measures are intended to mitigate the impact of the electricity price increase, especially on vulnerable groups of people, so as not to jeopardize the future of the largest electricity producer in the Slovak Republic.

The majority shareholder of Slovenské elektrárne, Slovak Power Holding, signed a Memorandum with the Ministry of Economy of the Slovak Republic and the Ministry of Finance of the Slovak Republic on the implementation of extraordinary measures to eliminate the impact of the increase in electricity prices on selected groups of consumers.

In the memorandum, Slovak Power Holding undertakes to take such steps so that Slovenské elektrárne could reserve electricity for 2023 and 2024, which would be sold to selected groups of customers at fixed prices. According to the Memorandum, 6.15 terawatt hours should be set aside for selected groups of customers at a price of EUR 61.20. The total value of the support will amount to approximately EUR 850 million.

At the same time, the Government hereby withdraws the bill from the so-called excessive profit in trading with electricity generated by nuclear facilities, the adoption of which would threaten the bankruptcy of Slovak Power Plants. The Ministry of Finance and the Ministry of Economy have committed not to take any initiative between 2022 and 2025 to introduce, increase or tighten any new tax, levy, fee, specific payment or regulation that could financially jeopardise Slovenské elektrárne.

"The shareholders of Slovenské elektrárne have offered a mechanism of assistance to vulnerable groups of the population for the years 2023 - 2024, so that the viability of the company, its ability to meet its obligations to banks and creditors, and at the same time so that we can continue work on the commissioning of Unit 3 of the Mochovce nuclear power plant and the completion of Unit 4 are not threatened. It is these new sources that will provide energy for Slovakia for a long period into the future at a time when Europe is facing and will face a shortage of stable electricity supplies," says Branislav Strýček, CEO of Slovenské elektrárne.

"The agreement managed to avert the imminent economic collapse of the Slovenské elektrárne. We believe that we will be able to defend this support model before the financing banks and find their understanding," says Jan Špringl, a shareholder representative and member of the Board of Directors of Energetický a průmyslový holding.

"We appreciate that the Slovak government reflected the arguments of the shareholders and the management of the company and I am glad that we were able to find a substantive solution for both sides," added Michele Bologna, representative of the shareholder - Enel Group.

About Slovenské elektrárne

More than 64.3 % of all electricity generated in Slovakia comes from the Slovenské elektrárne. The electricity they supply to the grid covers about 60 % of the country's consumption. In particular, thanks to nuclear power plants, Slovakia's largest producer supplies up to 94 % of electricity without emitting carbon dioxide, which is considered to be one of the greenhouse gases responsible for global warming. In addition to nuclear power plants, the company also operates 31 hydroelectric, two thermal and two photovoltaic power plants. Their total capacity at the end of 2021 was 4,143.8 megawatts.

Who are the shareholders

The company has two shareholders. The majority shareholder is Slovak Power Holding B.V. (SPH), holding a 66.0000000523 % stake in the share capital. In SPH, EP Slovakia B.V. (a subsidiary of the EPH group) holds 50 % of the share capital and the remaining 50 % belongs to Enel Produzione S.p.A (a subsidiary of the Enel group). The minority shareholder of Slovenske elektrární with a 33,9999999477 % share in the share capital is the Slovak Republic, on behalf of which the Ministry of Economy of the Slovak Republic acts.

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