Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure SI-2022-10/2275 – measures in Slovenia
Country | Slovenia , applies nationwide |
Time period | Temporary, 04 March 2022 – 31 December 2022 |
Context | War in Ukraine |
Type | Non-binding recommendations or other texts |
Category |
Responses to inflation
– Support for energy bills |
Author | Maja Breznik (University of Ljubljana) and Eurofound |
Measure added | 13 May 2022 (updated 21 June 2022) |
Since the autumn of last year, employer organisations have been alerting against rising energy prices which put the competitiveness of the Slovenian economy at risk. Simultaneously, the rising prices of electricity, gas and fuels have brought the low-income households into a state that makes it difficult for them to support themselves. In March 2022, the Slovenian Government responded to calls and adopted two laws for mitigation of 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.
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:
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.
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.
Workers | Businesses | Citizens |
---|---|---|
Does not apply to workers | Applies to all businesses | Does not apply to citizens |
Actors | Funding |
---|---|
National government
|
National funds
|
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:
The measure was adopted without prior consultation with social partners.
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).
Citation
Eurofound (2022), Subsidies and fixed prices for businesses' energy bills, measure SI-2022-10/2275 (measures in Slovenia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/SI-2022-10_2275.html
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30 January 2023
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