Following the government’s collapse last week, shareholders of Slovenské elektrárne a.s decided not to approve the price cap deal, which would have delivered price-capped electricity to households, several sources confirmed to EURACTIV Slovakia.
Under the deal, which has now been thwarted, the cost of electricity for households was supposed to be almost the same as this year, which Finance Minister Igor Matovič termed a “European uniqueness”.
Yet, if no deal is reached, electricity prices may rise by 380%, according to the office of the government.
On Friday, however, the company’s shareholders, which include Italian energy giant Enel, the EPH group of Czech billionaire Daniel Křetinský and the Slovak Economy Ministry, who all hold a similar one-third share, decided not to go along with the deal.
The reasons for this decision remains uncertain, but besides the government collapse, delays in electricity production from the new third unit of the Mochovce nuclear power plant may have played a role.
According to the sources, the deal can still be approved by the company’s shareholders, as they want stronger guarantees from the state regarding taxing the windfall profits.
The government could also force Slovenské elektrárne to deliver the electricity as parliament previously strengthened the government’s powers on the matter – though taking such action could lead to lawsuits and the company’s bankruptcy.
According to Denník N, negotiations between the shareholders, the Finance Ministry and the Economy Ministry should continue this week.
(Michal Hudec | EURACTIV.sk)
Source: euractiv.com
