Background information

The aim of this measure is to help companies deal with the high energy prices that have resulted from the war in Ukraine.

A subsidy may be provided to cover the increased costs of natural gas and/or electricity. Assistance is provided on the basis of Act No. 71/2013 Coll. on the provision of subsidies under the purview of the Ministry of Economy of the Slovak Republic, in accordance with the Temporary Crisis Framework for State Aid Measures to Support the Economy as a Result of Russia's Aggression Against Ukraine No. SA.104846 (2022/N), while EU funds will be used.

Content of measure

Under this scheme, only a company can be a recipient of aid. Aid is not granted to companies subject to sanctions adopted by the EU. The state has set maximum electricity prices (€199 per MWh) and maximum gas prices (€99 per MWh). The subsidy is in the amount of the difference between the price from the supplier, which the applicant paid on average during the eligible period, and the limit of the price of the commodity set by the state. The company can claim a subsidy either for electricity or gas, or for both commodities.

The limit of the total amount of aid is €2 million per company. The limit is €250,000 for a company operating in agricultural primary production and €300,000 for a company operating in the fishing and aquaculture sectors. The deadline for submitting applications was 30 June 2023. The total estimated budget of the aid scheme is €600 million. The aid can be provided no later than 31 December 2023. However, the aid can be paid out until 30 June 2024.

Use of measure

According to the estimate of the Slovak authorities, the number of beneficiaries under the scheme will exceed 1,000. As of 22 December 2022, a total of 19,280 applications for subsidies were received. The number of paid applications reached 13,631. The state reimbursed companies for 80% of costs above the level of €199 per megawatt hour for electricity and €99 per megawatt hour for gas. The Ministry of Economy paid out more than €77 million in the first round of energy grants. Up to €360 million were prepared. The Ministry of Economy of the Slovak Republic did not provide subsidies for consumed energy for the fourth quarter of 2022. Compensation was provided for August and September 2022, when energy prices were the highest. The period from October to December 2022 was not covered by this measure.

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 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	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:

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

Involvement

Involvement was requested by social partner organizations. At the meeting of the Economic and Social Council (HSR - tripartite body) on 24 October 2022, all representatives of the social partners expressed their views. The social partners provided information about the conditions and the need for help.

Views and reactions

Employers' attitudes towards the government's proposals for state aid were positive. The Association of Employers' Unions and Associations (AZZZ) expects that large enterprises will also receive support. The National Union of Employers (RÚZ) had reservations about the limit of €100,000 of financial assistance per month. It supports the proposal that prices should be compensated.

Trade unionists from the United Trade Unions of Slovakia (SOS) said that it is necessary to prepare help for large high-energy enterprises as well. The Confederation of Trade Unions (KOZ SR) took note of the government's proposals.

Sources

• 08 December 2022: Zákon č. 71/2013 Z.z. o poskytovaní dotácií v pôsobnosti Ministerstva hospodárstva Slovenskej republik (www.slov-lex.sk)
• 16 February 2023: Ministerstvo hospodárstva SR (2022): Schéma štátnej pomoci na podporu podnikov (energodotacie.mhsr.sk)
• 16 February 2023: Záznam z rokovania HSR dňa 24.10.2022 (hsr.rokovania.sk)