Slovakia to pay higher compensation to energy-intensive companies, parliament decides

Bratislava, May 10 (ČTK) – From next year, Slovakia will pay higher compensation to energy-intensive companies from state revenue generated by the sale of emission allowances. This follows from an amendment to the relevant law approved by parliament today. The change was also requested by representatives of Slovak industry, which is facing higher energy prices than in the past.

Once the law is signed by the president, 40 percent of the revenue will be allocated to various measures, rising to as much as half from 2025; currently, the share is set at a minimum of 30 percent. Of this allocated amount, 35 percent, up from the current 25 percent, is to be used for state incentives for a selected group of companies. Last year, the relevant state fund received 342.5 million euros (eight billion crowns) from the sale of allowances.

In January, Slovak aluminium smelter Slovalco described approval of the bill as one of the conditions for resuming primary aluminium production. The company announced at the time that it would shut down its last ten furnaces.