European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

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 SK-2022-50/3059 Updated – measures in Slovakia

Subsidies for household heating

Podpora vykurovania domácností – dotácie na ceny tepla

Country Slovakia , applies nationwide
Time period Temporary, 08 December 2022 – 31 December 2024
Context War in Ukraine
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Support for energy bills
Author Rastislav Bednarik
Measure added 16 February 2023 (updated 25 April 2024)

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.

Updates

The following updates to this measure have been made after it came into effect.

01 January 2024

At the meeting on December 6, 2023, the government adopted regulation no. 475/2023 Coll. , which establishes the maximum price for regulated heat supply for selected final consumers of heat. The government regulation is effective from January 1, 2024. There has been an expansion of the range of final consumers of heat, for whom the price of heat will be capped in 2024 (residential facilities of social services, operations of facilities for the social protection of children and social guardianship, and student dormitories). The maximum heat price is set at the amount of the single-component value of the maximum heat price last approved by the authority for 2022, increased by €20 per MWh including value added tax, but at most €199 per MWh including value added tax. The Ministry of Economy will provide the heat supplier in the form of payment to cover the difference between the heat price approved or determined by the authority and the heat price determined by the government by regulation for selected final heat consumers. Preliminary expenses of the state for payment were calculated in the amount of €256,394,836.

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)

Citation

Eurofound (2023), Subsidies for household heating, measure SK-2022-50/3059 (measures in Slovakia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/SK-2022-50_3059.html

Share

Eurofound publications based on EU PolicyWatch

30 January 2023

 

Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.

Article

12 September 2022

 

First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.

Article

12 September 2022

 

Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.

Article

5 July 2022

 

Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.

Article

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.