Background information

On 31 August 2022, the Parliament unanimously passed two laws to cushion the effects of the rising energy prices on households and businesses. Support to the economy due to high electricity and natural gas prices act (Zakon o pomoči gospodarstvu zaradi visokih cen električne energije in zemeljskega plina) stipulates partial subsidies for price increases to companies in all sectors, including agriculture and fishery. The law enables the state 30% co-financing of the electricity and natural gas costs above twice the increase in the prices of these two energy products in 2021 compared to 2022. In line with the Temporary Crisis Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia , the state intervention is in force from 1 June to 31 December 2022.

Content of measure

In collaboration with business representatives and considering other EU Members' interventions, The Ministry of Economic Development and Technology (MGRT) prepared the proposal for cushioning the effects of the rising energy prices on businesses.

According to the law, the state may co-finance 30% of energy costs above twice the prices in 2021 compared to 2022. More specifically, the law brings three types of support:

• Simple support: up to 30% of eligible costs and no more than €500.000;
• Special support: up to 30% of eligible costs and no more than €2 million under the condition total costs do not surpass 70% of consumption in 2021 (in force since 1 September 2022);
• Support for energy-intensive companies: subsidies are limited to €2 million under the condition companies prove the business loss and the support does not surpass 70% of eligible costs.

The measure covers the period from 1 June to 31 December 2022. Depending on the extension of the Temporary Crisis Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia by the EC, it may be extended in 2023.

The payoff will occur in two instalments, the first one until 31 December 2022 and the second one until 15 March 2023. The total support is estimated at €40 million.

Use of measure

Unknown.

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	Agreed (outcome) incl. social partner initiative	Agreed (outcome) incl. social partner initiative
Form	Consultation through tripartite or bipartite social dialogue bodies	Consultation through tripartite or bipartite social dialogue bodies

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

• Only employers' organisations
• Main level of involvement: Peak or cross-sectoral level

Involvement

The employer organisation, The Chamber of Commerce and Industry of Slovenia (GZS), participated in drafting the law proposal. The social partners discussed the draft law at the Economic and Social Council.

Views and reactions

Employer organisations (Chamber of Commerce and Industry of Slovenia – GZS, Association of Employers Slovenia - ZDS, Slovenian Chamber of Commerce – TZS, Chamber of Craft and Small Businesses of Slovenia – OZS, Association of Employers in Craft and Small Business of Slovenia - ZDOPS) made a list of twelve additional measures to be adopted at the national and European levels. Among the most important are three urgent interventions: to introduce the energy price cap, eliminate the dependence of the electricity price on the price of natural gas at the European level, and reintroduce a temporary layoff scheme.

No views are available from trade unions.

Sources

• 31 August 2022: MMC SLO, The Parliament passed the energy allowance for the most vulnerable, money for firefighters and aid to the economy (Državni zbor sprejel energetski dodatek za najranljivejše, denar za gasilce in pomoč gospodarstvu (www.rtvslo.si)
• 31 August 2022: Support to the economy due to high electricity and natural gas prices act (Zakon o pomoči gospodarstvu zaradi visokih cen električne energije in zemeljskega plina, ZPGVCEP (imss.dz-rs.si)
• 05 September 2022: The Chamber of Commerce and Industry of Slovenia (GZS), Meeting of economy and politics: businessmen expected more (Srečanje gospodarstva in politike: gospodarstveniki pričakovali več (www.gzs.si)