Slovak energy sector

Very high voltage, Liptovská Mara HPPThe Slovak electricity market is part of the CENTREL area which also includes Poland, Hungary and the Czech Republic. Slovenské elektrárne represents around 8% of CENTREL’s installed capacity and 7% of its annual generation.

In the Slovak Republic generation and wholesale activities were fully liberalized in January 2005. As a result there has been no price regulation at the wholesale level. Also, import and export prices are determined by bilateral contracts and since January 2005 there are no limits on the amounts of electricity that can be exchanged out of the domestic market.

At national level, Slovenské elektrárne is the biggest electricity provider in Slovakia with 69% of the country’s generation market. Slovenské elektrárne is the main supplier of electricity for the three biggest regional distribution companies in Slovakia (ZSE, SSE and VSE) and also supplies electricity to large businesses. Slovenské elektrárne is the main provider of ancillary services in Slovakia.

Gross electricity production and consumption in Slovakia (in GWh)

Data source: SEPS, a.s.

Slovenské elektrárne is not active in the electricity transmission sector or in electricity distribution. However, since 2009, Slovenské elektrárne expanded in the distribution market for small and medium-sized companies in Slovakia and the Czech Republic. In 2009 Slovenské elektrárne established SE Predaj, a 100% subsidiary that operates in the Slovak SME market. In 2011, it started selling electricity also in the regulated household segment. Since 2013, the subsidiary offers also gas to its customers from the business sector.

The three biggest distribution companies ZSE (West), SSE (Central), and VSE (East of Slovakia) are 51% controlled by the State, but the remaining minority shares and the executive rights are in the hands of private investors such as the German E.ON, the Czech-Slovak private equity fund Energy and Industrial Holding plc, or the German RWE Group, respectively.

In the natural gas market, the natural monopoly Slovenský plynárenský priemysel, a.s. (SPP) and its 100% subsidiaries Eustream (for transport) and SPP Distribution remain dominant on the market. In 2002, the Slovak Government sold 49% of SPP to the Slovak Gas Holding – a consortium of E.ON Ruhrgas and GdF SUEZ, who sold it to Energy and Industrial Holding plc in 2013. The remaining 51% remains in the hands of the State.