Slovenia, Government will continue to intervene as long as necessary to contain high electricity prices

, SEE Energy News

Slovenian Prime Minister Janez Jansa announced that the Government will continue to intervene as long as necessary to contain high electricity prices. The main problem, in his view, is the European formula to calculate electricity prices that takes into account gas prices, but the formula is about to change.

Under a legislative package passed in late January to mitigate high energy prices, electricity bills have been cut for the cost of network fees for three months until the end of April. Government data shows the measure reduced the bills by almost 40 %.

PM Jansa said that the Government would continue to intervene. It will take funds to finance the gap from the surpluses generated because Slovenian electricity producers are charging higher prices. Considering these are mainly state-owned companies, the Government will reallocate these funds.

He explained that the main reason for high electricity prices on the European market is the formula, which Slovenia sought to change last year during its presidency of the Council of the EU. After several countries called for change in February this year, the European Commission decided to draw up a new formula, which is expected to come into force in May or June.

The three-month freeze on electricity network charges is being challenged at the Constitutional Court by an association of small shareholders who hold stakes in electricity distribution companies.