Restrictions on household electricity prices will remain in effect in 2024 for 90% of consumption, while households will pay the remaining 10% at market prices, according to the government decision. By the end of April, the government had also imposed price limits on natural gas.
According to the statement from the government, wholesale electricity prices have decreased this year. On the derivatives exchange HUDEX, the prices of base energy for 2024 ranged from 250 to 135 euros/MWh, while peak energy prices were 20 to 40 euros/MWh higher than base prices. The lowest base price in 2023 for 2024 was around 135 euros/MWh and the lowest peak price was 140 euros/MWh. However, wholesale prices are still significantly higher than the current state limit for households, which is set at 100 euros/MWh.
Based on current market prices and purchases made in the years before 2023, the Slovenian Government estimates that household prices, if no additional measures are taken next year, could rise to between 150 and 200 euros/MWh.
Therefore, the government has decided to extend the price regulations for the next year, and the aim of the current proposal is also gradual deregulation without a price shock. The price cap measure will only apply to 90% of consumer consumption, while households will pay 10% of their consumption at market prices determined freely by suppliers.
The Government believes that this approach will encourage rational electricity usage, promote competition among suppliers, and facilitate a gradual return to a free market. The government also issued a regulation on determining the prices of natural gas, setting the maximum retail price of natural gas for households after the end of the year. Current prices will be valid until the end of 2023. The regulation on limiting gas prices for households will be valid from 1 January 2024 until the end of the heating season, which is 30 April 2024.