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-2023-1/3218 – Updated – measures in Slovakia
Country | Slovakia , applies nationwide |
Time period | Temporary, 01 January 2023 – 30 June 2024 |
Context | War in Ukraine, Cost of Living Crisis |
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 | 07 June 2023 (updated 26 April 2024) |
To address the high costs of energy resulting from the war in Ukraine, the Ministry of Economy of the Slovak Republic (MH SR) created a support scheme for selected entities of public administration affected by high energy prices.
The purpose of this measure is to ensure that selected entities of public administration, churches and religious societies, can retain their employees, continue to pay their bills, and maintain their liquidity and cash flow. On the basis of Act No. 71/2013 Coll., these organisations can apply for the provision of subsidies within the scope of the MH SR. The measure complements the case State aid to cover energy payments for companies .
A subsidy may be provided to cover the increased costs of natural gas and/or electricity. A subsidy under this scheme can be provided up to 80% of eligible costs. The total amount of the subsidy may not exceed €200,000 per applicant per month of the eligible period. The eligible period lasts from 1 January 2023 to 31 December 2023.
A subsidy based on this scheme can be provided no later than 30 June 2024. However, the subsidy can be paid out until 31 December 2024. The total amount of allocated resources is €210 million.
The beneficiary must meet certain criteria:
Entities with an established electricity and /or gas consumption point are eligible for this measure.
The following updates to this measure have been made after it came into effect.
08 December 2023 |
SR Government Regulation No. 457/2023 Coll. resolves the method of capping gas supply prices for household gas consumers and electricity and gas supply prices for selected vulnerable consumers for the year 2024, in a manner similar to that in 2023. The expected impact of the regulation of the Slovak government on the budget of the public administration is for the supply of gas in the total amount of approximately €751 million (of which the supply of gas for households in the amount of €721 million and the supply of gas to selected vulnerable gas consumers in the amount of €30 million) and for the supply of electricity for selected vulnerable consumers of electricity, the impact is expected to be in the total amount of approx. €6 million. |
As of 26 June 2023, the Ministry of Economy (MH) of the Slovak Republic had already paid out more than 102,000 applications for compensation of high energy prices for a total amount exceeding €118 million. Of this number, selected public administration entities and church organizations represented 36,008 applications for the amount of €14 million. At the same time, Ministry of the Economy registers another 117,000 received applications for so-called energy compensation in the amount of almost €154 million, of which selected entities of public administration and church organizations represent 40,000 applications in the amount of almost €18 million. At the same time, the MH reminds that the call for coverage of additional costs in connection with high energy prices for all entities performing economic activity has been extended until 30 September 2023.
Workers | Businesses | Citizens |
---|---|---|
Does not apply to workers |
Other businesses
|
Does not apply to citizens |
Actors | Funding |
---|---|
National government
EU (Council, EC, EP) |
European Funds
National funds |
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | Consulted | Consulted |
Form | Unknown | Unknown |
Social partners' role in the implementation, monitoring and assessment phase:
From the autumn of 2022, employers' organisations have been appealing to the government to help businesses pay their increased energy costs. The discussion in October 2022 at the Economic and Social Council (a tripartite body) was significant, where the government promised to prepare measures to supplement the already agreed Memorandum on not increasing electricity prices in 2023. As part of the collection of measures, the Ministry of Economy also prepared a measure for energy subsidies for public utilities sector.
At the tripartite meeting 11 July 2022 (Economic and Social Council of the Slovak Republic), support for businesses was discussed in connection with the compensation of electricity and gas prices. On 24 October 2022, the entire discussion was devoted to the topic Compensation of high energy prices for business entities. The Public Sector Assistance Scheme was also discussed. There was agreement on the highest possible support for various types of businesses.
Citation
Eurofound (2023), Energy subsidies for public administration and churches , measure SK-2023-1/3218 (measures in Slovakia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/SK-2023-1_3218.html
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30 January 2023
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