Compensations For Energy Prices In Slovakia - February 2023

• Jurisdiction: European Union
• Law Firm: Kinstellar
• Subject Matter: Energy and Natural Resources, Energy Law, Oil, Gas & Electricity
• Author: Mr Roman Oleksik and Erik Neupaver
• Published date: 02 March 2023

February 2023 - On 21 February 2023, the Ministry of Economy of the Slovak Republic ("the Ministry") published a call for the submission of applications for a subsidy to cover additional costs due to the increase in gas and electricity prices ("the Call"). The aim of the Call is to compensate qualifying companies and natural persons (entrepreneurs) for excessive energy prices from January to March 2023. In this article, we present an overview of the key information.

Basis

The Call was published in accordance with the state aid scheme approved by the European Commission under No. SA. 104846 under the State aid Temporary Crisis Framework ("the Scheme"). The Ministry has allocated a total amount of EUR 279,820,623 for applicants under the Call. The total approved amount of the Scheme is EUR 600,000,000.

The Call is continuation of previous call under the Scheme published in 2022 which allowed the eligible enterprises to apply for compensation of energy prices in August and September 2022.

Form of aid

Aid will be in the form of a direct grant and only in respect of the gas or electricity off-taken during the period from 1 January 2023 to 31 March 2023 ("the Relevant Period").

Aid will be provided in the amount of up to 80 per cent of the portion of costs exceeding:

• EUR 99 per MWh of gas; and
• EUR 199 per MWh of electricity

("the Eligible Costs").

Aid will not be provided in respect of the amount of gas or electricity consumed for the production of electricity or heat in case of a subsequent supply.

Calculation of the aid amount

• In respect of electricity

aid = Consumption in MWh * (average price paid for MWh in EUR - 199) * 0.8

• In respect of gas

aid = Consumption in MWh * (average price paid for MWh in EUR - 99) * 0.8

The average price for calculation purposes will be determined as the average price paid by the applicant during the Relevant Period.

Eligible enterprises

The aid is aimed at all qualifying enterprises regardless of their size, i.e., for micro, small and medium enterprises as well as large enterprises.

All types of businesses are eligible to apply for aid except:

• credit and financial institutions;
• enterprises that are (i) subject to EU sanctions, (ii) owned or controlled by sanctioned persons, or (iii) conducting business in sectors targeted by EU sanctions.

Enterprises in difficulties are also eligible for the aid.

Financial limits

The total amount of aid is limited to:

• EUR 600,000 per enterprise however,
• EUR 200,000 per each relevant...