Background information

On 27 December 2022, the National Assembly adopted the Act on Aid to the Economy to Mitigate the Effects of the Energy Crisis (ZPGOPEK). Following the partial subventions for rising energy costs in March 2022 and August 2022 , the law provides the basis for comprehensive aid to the economy in 2023. It consists of three support measures:

1. Partial reimbursements of the costs of price increases for electricity, natural gas and steam.
2. Wage compensations for temporary layoff and short-time work .
3. Liquidity loans .

Content of measure

The whole aid package (subsidies for energy price increases, wage compensations and liquidity loans) is worth €1.2 billion.

The partial reimbursements for the costs of price increases for electricity, natural gas and steam covers legal persons registered until 30 November 2021. Under this measure, companies can receive subsidies until the end of 2023. Financial and insurance companies are exempted from this measure.

The ‘partial reimbursements of energy price increases' measure include five types of aid, namely:

• simple aid
• basic aid
• special aid in the event of reduced economic performance
• specific aid for energy-intensive businesses
• specific aid for energy-intensive businesses in specific sectors

The claimant can request only one type of aid. The eligibility criteria require a 50% price increase compared to 2021 and between 40% and 80% of eligible expenses, depending on the support scheme. However, the actual cost in 2023 is capped at a maximum price of €510 per MWh for electricity and €160 per MWh for natural gas. Moreover, there is also a limitation that no more than 70% of consumption in 2021 can be taken into account for the calculation of eligible costs. The law thus indirectly encourages companies to save energy consumption.

For simple aid, reimbursements amount to 50% of eligible costs, up to €2 million per beneficiary (much less in agriculture and fishery). If a company leases electricity for less than €150 per MWh or natural gas for less than €79 per MWh, the company may apply only for ‘simple aid.’

The other four types vary according to the proportion of eligible costs and the maximum support per beneficiary. The basic aid covers 50% of eligible costs, and the maximum is €4 million; the special aid in the event of reduced economic performance covers 40% of costs, the maximum is €100 million; the special aid for energy-intensive enterprises allows 65% of eligible costs and the maximum of €50 million; and the special aid in specific sectors 80% of costs up to €150 million per beneficiary. The maximum applies to the parent company and its Slovenian subsidiaries.

The application must be submitted by 28 February 2023. Payments will be advanced monthly at 80% rate since March 2023. Actual costs will be recalculated in the second half of 2023 and again in 2024, when the remaining funds of 20% will be paid off by 28 February 2024.

As the government issued the Decree on fixing the electricity price for micro, small and medium-sized enterprises in December 2022, these companies are no more eligible for partial reimbursements (nor wage compensations). However, those who use natural gas and steam are still eligible.

Use of measure

On 30 March 2023, the Ministry of the Economy stated that the first instalment was paid to 1,958 beneficiaries who have received about €79 million for the cost of energy products in 2023.

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	European Funds National funds

Social partners

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

	Trade unions	Employers' organisations
Role	Consulted	Consulted
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:

• Unknown
• Main level of involvement: Peak or cross-sectoral level

Involvement

The Economic and Social Council (ESS), the tripartite social dialogue body, discussed and negotiated the law draft.

Views and reactions

In autumn 2022, employer organisations campaigned for the energy price cap to be extended to all companies notwithstanding their size. However, the law from December 2022 adopted the electricity pricing mechanism for large companies instead of the price cap. It is a formula retailer must consider when setting the price – the so-called dynamic cap. The Chamber of Commerce and Industry (GZS) was critical about it, saying it would not bring prices in the range between €150 and €250 as expected.

On 10 February 2023, five employer organisations sent a public letter to the government. They stressed the problem of large and energy-intensive companies to which the regulation of energy prices does not apply. Moreover, they pointed out the ineffectiveness of subsidies for large companies due to the many restrictions imposed by the ZPGOPEK and the liquidity issues, as the first subsidies will be paid at the end of March 2023, while the payment deadlines for electricity suppliers are 15 days.

Sources

• 27 December 2022: Act on Aid to the Economy to Mitigate the Effects of the Energy Crisis ( Zakon o pomoči gospodarstvu za omilitev posledic energetske kriz (www.uradni-list.si)
• 14 February 2023: Government of the Republic of Slovenia, Measures to mitigate energy price rises (Ukrepi za omilitev draginje na področju energetike (www.gov.si)
• 30 March 2023: Ministry of the Economy, Press Releas (www.gov.si)