Background information

As a result of the war in Ukraine and the subsequent increase in energy prices, the government decided to help households in paying the increased prices of thermal energy. By its regulations No. 464/2022 Coll. and No. 523/2022 Coll. the government set a limit on the increase in the price of heat for a regulated entity, set the amounts per MWh of heat for customers in residential buildings and subsequently prepared a scheme for subsidies that can be provided to cover the difference between the current price of heat approved or determined by the Office for the Regulation of Network Industries and the price of heat determined by the government.

Content of measure

The price of heat delivered by a regulated entity to end consumers in residential buildings in 2023 cannot exceed €199 per MWh, including the VAT. The state will pay the difference between this limit and the actual costs corresponding to actual heat consumption in 2023. Without carrying out the crisis regulation of the price of thermal energy, according to Ministry of Economy (MH SR) estimates, the average final price for households could climb from €112.65 per MWh to more than €200 per MWh, which represents a price increase compared to 2022 by more than 80%. After that, the total share of heat expenses in household disposable income would rise from 8.1% in 2022 to over 13% in 2023 (for households with primary income from unemployment support and/or benefits of social assistance, it would be an increase from the level of 27% to over 45%). The Ministry of Economy of the Slovak Republic has preliminarily calculated the expenditure on subsidies for regulated entities in the amount of €394,524,138.

Use of measure

Since the beginning of 2023, the final prices of heat for households cost were subsidised by almost €250 million (the data of the Ministry of Economy (MH) published on 22 August 2023). The Ministry continuously paid compensations to heating companies, that were supposed to cover their losses caused by "ceiling" of prices adopted by the government. In total, the Ministry paid out approximately €311 million in 2023. The state subsidized companies supplying gas for households, in particular. During 2023, the MH continuously paid out to gas suppliers €1.25 billion, in total.

Target groups

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

Actors and funding

Actors	Funding
National government EU (Council, EC, EP)	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:

• Social partners jointly
• Main level of involvement: Peak or cross-sectoral level

Involvement

Involvement was requested by social partner organizations. At the Economic and Social Council (HSR) meeting (tripartite body) on 26 September 2022, all representatives of the social partners spoke. The social partners provided information about the conditions and the need for help. The social partners discussed subsidizing heat consumption for 2024 at the meetings of the Economic and Social Council on 9 October 2023 and 11 December 2023

Views and reactions

The problems of providing assistance to households were also addressed by the Economic and Social Council (tripartite body) on 26 September 2022. Employers from "Association of employers' unions and associations" (Asociácia zamestnávateľských zväzov a združení - AZZZ) emphasized that help should be available and fast. Employers from "National Union of Employers" (Republiková únia zamestnávateľov - RUZ) reminded that in 2022 households will not be affected by any increase in energy and gas prices (as a result of the state's agreement with energy companies) and the situation must be resolved in the following year. "Confederation of Trade Unions" (Konfederácia odborových zväzov - KOZ SR) drew attention to residents' concerns for the year 2023, saying that it is necessary to communicate packages of measures towards people and households in order to calm the situation. The trade unionists were also interested in how health care facilities would be approached. The social partners discussed subsidizing heat consumption for 2024 at the meetings of the Economic and Social Council on 9 October 2023 and 11 December 2023. The social partners agreed with the government's proposal to subsidize heat prices

Sources

• 16 February 2023: Nariadenie vlády č. 464/2022 Coll (www.slov-lex.sk)
• 16 February 2023: Nariadenie vlády č. 523/2022 Coll. (www.slov-lex.sk)
• 16 February 2023: Záznam z rokovania HSR 26 september 2022 (hsr.rokovania.sk)
• 28 June 2023: Radovan Potočár Nesmeli výrazne zdražieť, teraz ich štát kompenzuje. Teplári dostali už štvrť miliardy eu (www.energie-portal.sk)
• 06 December 2023: Nariadenie vlády SR č. 475/2023, ktorým sa ustanovuje maximálna cena za regulovanú dodávku tepl (www.slov-lex.sk)
• 01 January 2024: Prerokovanie na vláde 6.12.2023 - Návrh nariadenia vlády Slovenskej republiky, ktorým sa ustanovuje maximálna cena za regulovanú dodávku tepla (rokovania.gov.sk)
• 12 January 2024: Dotovanie energií v roku 2023 stálo miliardy eu (www.energie-portal.sk)