Factsheet for measure
SK-2022-50/3059
– measures in Slovakia
Subsidies for household heating
Podpora vykurovania domácností – dotácie na ceny tepla
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Country
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Slovakia
, applies nationwide
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Time period
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Temporary, 08 December 2022 – 31 December 2023
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Context
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War in Ukraine
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Type
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Legislations or other statutory regulations
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Category
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N/A
– Support for energy bills
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Author
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Rastislav Bednarik
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Measure added
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16 February 2023 (updated 07 November 2023)
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Background information
As a result of the war in Ukraine and the subsequent increase in energy prices, the government decided to help households pay the increased prices for 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 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 price of heat approved or determined by the Office for the Regulation of Network Industries and the price of heat that 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 value added tax. The state will pay the difference between the amount remitted to the regulated entity in 2023 to cover costs related to setting a limit on the increase in the price of heat for end customers in residential buildings 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 (MHSR) 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
Subsidizing the final prices of heat for households cost almost €250 million from the beginning of 2023. This follows from data published by the Ministry of Economy on 22 August 2023.
Target groups
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Workers
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Businesses
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Citizens
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Does not apply to workers
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Does not apply to businesses
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Applies to all citizens
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Actors and funding
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Actors
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Funding
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National government
EU (Council, EC, EP)
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European Funds
National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Consulted
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Consulted
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Form
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Consultation through tripartite or bipartite social dialogue bodies
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Consultation through tripartite or bipartite social dialogue bodies
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Social partners' role in the
implementation, monitoring and assessment phase:
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Social partners jointly
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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.
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 (AZZZ) emphasized that help should be available and fast. Employers from National Union of Employers (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 (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.
Sources
