Slovenian energy companies will have to pay a special tax on windfall profits under new legislation that will channel revenue towards renewable sources of energy and price subsidies.
In order to fund the national budget, any revenue generated from wholesale electricity sold in Slovenia above €180 per Megawatt hour will be given over to the state.
Producers whose production costs exceed €180 per MWh will be exempted, as will electricity produced using natural gas or small installations.
A special threshold of 230 euros per megawatt hour has been set for power generated by lignite, an expensive fuel used in Šoštanj, Croatia’s last coal-fired power station.
Companies that produce or process crude oil or natural gas in Slovenia will be liable to pay a “solidarity charge” on their profits when they exceed the average third-year net profit multiplied by four.
The government has not provided an estimate of how much revenue it expects the tax to produce, but according to the IRS report, which indicates that most energy firms are state-owned, the majority of which are struggling financially and far from profitable, it seems unlikely that this tax will generate a substantial amount of revenue.
A fuel price decrease caused a 74% drop in net profit for the largest oil company this year.
Slovenske Elektrarne, a large power producer, says it expects to lose more than €400 million this year due to lower-than-expected production of its hydro division and coal supply problems in Šoštanj.
The tax is connected to several measures that reduce the demand for electricity at peak times by at least 5%.
The transmission system operator, Eles, collaborates with electricity traders, suppliers and large individual consumers to ensure an efficient and reliable electricity grid.
Users who know about critical time periods might be willing to pay a reduced network fee if they reduce their consumption by 5% at those times and shift their usage to off-peak periods.
The expansion of renewable sources like green hydrogen and biogas would be supported by some of these funds, as well as other energy and environmental initiatives.
The legislation includes a compensation scheme for providers in the electricity industry, who must sell their products at regulated prices.
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