The Slovak government has reached a deal with the country's largest electricity producer, Slovenske Elektrarne (SE), on the supply of electricity to households at prices significantly lower (€61.21 per MWh) than the current market prices until 2024 in exchange for not imposing a planned tax on excessive profits in trading electricity generated by nuclear facilities, said Finance Minister Igor Matovic on February 16. 

"Slovak households consume some 5.6 TWh annually. The government wants to use this difference to supply cheaper electricity to some hospitals, care homes and schools. It won't be enough for all, but we want to use this package so that not a single kilowatt-hour of energy significantly cheaper than the market price is wasted," Matovic was quoted by the Slovak News Agency as saying.

According to estimates by Economy Minister Richars Sulik, households should save a total of about €1bn on their electricity bills by 2024, an average €500 annually in 2023 and 2024. If the government did not reach such an agreement, Sulik said, the electricity prices for Slovak households would have grown by 80% in 2023. 

Last week the government introduced a proposal to tax excessive profits from electricity generated in nuclear facilities. The proposed tax was a reaction to the movement of market prices of electricity, which do not reflect the Slovak low-emission energy mix and low production costs in nuclear power plants. 

The Slovak parliament was supposed to discuss the bill in a fast-tracked legislative procedure in the next few days, but the bill has been withdrawn now.  

SE CEO Branislav Strycek had claimed that such taxation might result in the company going bankrupt and a halt of completion of the third and fourth blocks of the Mochovice nuclear power plant.

SE is controlled by EPH of Czech billionaire Daniel Kretinsky and Italian energy giant Enel, though the state retains a 34% stake.