Background information

The rising prices of electricity, gas and fuels have hit low-income households particularly hard. Since autumn of last year, employer organisations have been concerned about how rising energy prices impact the competitiveness of the Slovenian economy.

In March 2022, the Slovenian government responded to calls and adopted two laws for mitigation of the negative consequences due to rising energy prices for vulnerable households and the economy. Additionally, the two decrees lowered excise duties for electricity and energy sources and one fixed the price of certain petroleum products lowered excise duties for electricity and energy sources and one fixed the price of certain petroleum products.

Content of measure

The Government adopted the_Act Determining the Measures to Mitigate the Consequences of Rising Energy Prices in the Economy and Agriculture_ (ZUOPDCE), published on 4 March 2022. The state bestowed a partial subsidy for energy costs to businesses (including self-employed) active since 1 December 2021. To be eligible, they must have:

• at least five employees;
• at least 5% of energy costs in the structure of operating costs in 2019;
• at least €10,000 of spending on the energy;
• at least 40% increase in energy costs for 2022 compared to 2021.

Agricultural businesses are entitled to subsidies for high energy prices and mineral fertilizers. Subsidies are calculated in proportion to the size of their land.

In neither case, the total aid cannot exceed 60% of a loss caused by rising energy prices.

Upon request, Financial Administration will pay a lump sum by April 20, 2022. If the beneficiary subsequently finds that he has requested an excessive amount, he will inform the Financial Administration by 31 January 2023 and return the funds.

Like consumers, also businesses profit from lower excise duties for electricity. According to Prime Minister Janša, the state will allocate €70 million to help the economy due to high energy prices.

Use of measure

The negative consequences of high energy prices were also addressed by lower excise duties and fixed prices of some fuels. Lower excise duties for electricity and energy sources will be in force until 31 July 2022. A fixed price of certain petroleum products (gasoline and diesel) was valid from 15 March to 30 April 2022. After harsh protests from consumer and employer organisations, the government reestablished the fixed prices of gasoline and diesel on 10 March 2022.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

The measure was adopted without prior consultation with social partners.

Views and reactions

The Chamber of Commerce and Industry of Slovenia (GZS) appealed to the government to take additional measures to protect the industry from high energy prices due to the war in Ukraine. GZS recommends the Government the immediate adoption of a scheme to support companies under point 2.4 (Aid for additional costs due to exceptionally severe increases in natural gas and electricity prices) in the Temporary Crisis Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia, Communication from the European Commission from 23 March 2022).

Sources

• 29 January 2022: Amanded Decree fixing the excise duty level for energy sources (Uredba o spremembah Uredbe o določitvi zneska trošarine za energente (www.uradni-list.si)
• 29 January 2022: Decree fixing the excise duty level for electicity (Uredba o določitvi zneska trošarine za električno energijo (www.pisrs.si)
• 04 March 2022: Act Determining the Measures to Mitigate the Consequences of Rising Energy Prices in the Economy and Agriculture (Zakon o ukrepih za omilitev posledic dviga cen energentov v gospodarstvu in kmetijstvu, ZUOPDCE) (www.pisrs.si)
• 09 March 2022: Government of Slovenia, Aid for the economy and agriculture to mitigate the negative consequences of high energy price (www.gov.si)
• 14 March 2022: Decree fixing the price of certain petroleum products (Uredba o določitvi cen določenih naftnih derivatov (www.uradni-list.si)
• 11 May 2022: The Chamber of Commerce and Industry of Slovenia (GZS), Press Releas (www.gzs.si)
• 19 December 2022: Emergency Intervention to Address High Energy Prices Act (Zakon o nujnem posredovanju za obravnavo visokih cen energije, ZNPOVCE (www.uradni-list.si)