Slovenské Elektrárne and the Slovakian government have agreed measures which the company says are worth about EUR850 million (USD964 million) to limit the impact of rising electricity prices.

The Mochovce plant, which is due to get two new units (Image: Slovenské Electrárne)

The issue of soaring energy prices has been hitting hard across Europe this winter with governments seeking to take measures to limit the impact on householders.

Earlier this month the Slovakian government proposed bringing in a tax on the "excess profits" of nuclear power plants - proposals which prompted Slovenské Elektrárne, the owner of the country’s two nuclear power plants, to warn that it might be forced to file for bankruptcy.

But the deal reached will see the company agreeing to sell 6.15 terawatt hours for selected customer groups at a price of EUR61.20 for 2023 and 2024. It says "the total value of the aid will be around EUR850 million".

Meanwhile the government has withdrawn the “excessive profit” tax proposals and committed not to "introduce, increase or tighten any new tax, levy, fee, specific payment or regulation that could financially endanger Slovenské Elektrárne."

Branislav Strýček, CEO of Slovenské Elektrárne, said: "The shareholders of Slovenské Elektrárne offered a mechanism to help vulnerable groups for the years 2023-2024, so as not to jeopardise the company's viability, its ability to meet its obligations to banks and creditors, and to continue work on the commissioning of operation of unit 3 and completion of unit 4. It is these new sources that will provide energy for Slovakia for a long period to come at a time when Europe is facing and will face a shortage of stable electricity supplies."

"We appreciate that the Slovak government reflected the arguments of the shareholders and the company's management, and I am glad that we were able to find a substantive solution for both parties," said Michele Bologna, from the Enel Group.

Slovenské Elektrárne is one-third state owned, with the rest owned by Slovak Power Holding, which is itself owned equally by EP Slovakia, a subsidiary of EPH group, and by Enel Produzione SpA, a subsidiary of the Enel Group.

Researched and written by World Nuclear News

Date: Wednesday, 23 February 2022
Original article: world-nuclear-news.org/Articles/Slovak-agreement-reached-on-measures-to-limit-ener