#StateAid – Commission approves provisional measure ensuring security of local electricity supply in #Slovakia

| May 13, 2019

The European Commission has approved under EU State aid rules the compensation granted by Slovakia to electric utility company Slovenské Elektrárne a.s. for temporarily supplying a mandatory quantity of electricity from indigenous fuel sources into the Bystričany electricity system node in Slovakia.

Slovakia notified the Commission of its plans to entrust electric utility company Slovenské Elektrárne a.s. with a temporary public service obligation to ensure security of supply in the geographical area around the Bystričany electricity system node, which is insufficiently connected with the rest of the Slovak electricity grid.

Under the public service obligation, Slovenské Elektrárne will supply from its power plant in Nováky a mandatory quantity of at least 870 gigawatts hours and up to 1,100 gigawatts hours per year of electricity from indigenous fuel sources into the geographical area around the Bystričany node of the Slovak electricity grid.

Slovenské Elektrárne will be compensated by the Slovak State for fulfilling this public service obligation, to cover the difference between its revenues from the sale of electricity and other services and its production costs. The Commission assessed the measure under the EU state aid rules on services of general economic interest (SGEI). The Commission found that: (i) The only electricity producers located in proximity of the Bystričany electricity system node are the Nováky power plant and some very small-scale hydropower units.

Without the public service obligation, the current power production infrastructure would not ensure reliable electricity supply for the geographical area around the Bystričany electricity system node; (ii) The measure is proportionate, as the expected rate of return for the Nováky power plant is in line with that of similar power units and does not lead to overcompensation; (iii) The measure is limited in time and will terminate once the new supply infrastructure is operational and, in any event, no later than the end of 2023.

Therefore, the Commission concluded that the Slovak measure is in line with EU State aid rules, as it promotes security of supply in the geographical area around the Bystričany electricity system node, without unduly distorting competition.

The full press release is available online in ENFRDESK.

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Category: A Frontpage, Electricity interconnectivity, Energy, Energy market, Energy security, EU, Slovakia

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