December 04
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Slovakia may cut electricity exports to Germany and other European Union countries if EU governments fail to meet its demand to change the energy emergency proposal, said country's Prime Minister Eduard Heger, Bloomberg reported.

EU member states intend to strike a deal on an unprecedented package of energy market interventions at an energy ministerial meeting Friday in Brussels. It includes a cap on revenues for lower-cost producers of electricity that Slovakia claims is unsuitable for its national electricity industry.

He said the proposed revenue ceiling of 180 euros per megawatt hour means that his country would receive very limited funding, which would then be directed to households and companies to contain the impact of the crisis. According to him, Slovak producers have already sold most of their electricity produced in 2023 below this threshold, making the cap ineffective.

Slovenske Elektrarne AS, exports electricity mainly to Germany, the Czech Republic and Hungary. The company could face an intolerable financial burden because of government plans to nationalize utilities in the event of an emergency, said Enel SpA, the producer's shareholder.

The nationalization plans, approved this week by the Slovak parliament, would mean an inability to fulfill existing loans and contracts and therefore a concrete risk of insolvency and bankruptcy, Enel said in a statement.

Heger said he would propose redistributing the revenues from the restriction to all member states. Another solution could be to allow Slovakia to use EU cohesion funds to compensate households and businesses.

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