Electricity consumption decreased 18% among businesses in September compared to the same time last year, according to the data provided by Slovak short-term electricity market operator OKTE.
The dramatic drop can be explained by the need to save energy and therefore money, because of the high energy prices.
Some big companies such as aluminium producer Slovalco, ferroalloy producer OFZ or fertiliser producer Duslo decided to tone-down production, which also contributed to lower consumption. For example, Slovalco, previously one of the biggest electricity consumers in Slovakia, decided at the end of August to halt production until energy prices reach affordable levels again.
At the same time, consumption also decreased among households, but only by 6%. The decrease is due to the pandemic, during which consumption was higher.
Numbers will likely decrease even further, according to OKTE’s Michal Cabala who believes Slovakia will have no issues achieving the EU’s 15% electricity saving target.
However, a positive aspect of the crisis for Slovakia is the boom of photovoltaics among households and businesses, he added.
The Slovak government plans to cap energy prices for businesses at €199 per megawatt/hour (MWh) for electricity and €99 per MWh for natural gas.
Help is bound to next year’s budget, which, while currently discussed in the National Council, may not be adopted given the coalition’s lack of majority in parliament.
The state will reimburse 80% of what is above this specified level. If a company buys electricity for €199, the state does not have to pay anything. If a business buys electricity for €500, the difference is €300, and the state pays 80% of that to the employer.
The government wants to cap prices for households in a different scheme on €61/MWh, but only the first four megawatts would be eligible for the discounted price. All the above would be priced according to the normal regulations. Approximately 40% of the electricity price is regulated.
The government has already agreed on a deal with electricity producer Slovenské elektrárne a.s., which should deliver 6.1 terawatts/hour of cheap electricity next year.
(Michal Hudec | EURACTIV.sk)
Source: euractiv.com
