By: Vida Kocjan
The government has extended the regulation (capping) of electricity prices for households and small business consumers; however, the industry has been left high and dry and, as Golob stated, “will have to cover the costs through higher network charges.”
For the rest, energy prices will remain subsidised for a few more months, while the network charge remains as determined, meaning they will take money from our left pocket and put it (for themselves) into the right one, allowing taxpayer money to be funnelled back to their own (into the energy sector).
Network charges under the new system
This month, energy consumers are receiving their first bills with the network charge calculated under the new system. However, businesses are again warning that the new method of calculating network charges will increase electricity costs for some sectors by up to threefold.
Golob’s government has abruptly changed its stance. After a long period of insisting that the new network charge calculation method was perfectly fine, it has suddenly reversed course, becoming a sharp critic of the changes. Now, likely out of concern over potential public unrest (as network charges under the winter tariff would increase by as much as 156% in November), it has decided to extend the regulation of electricity prices for households and small business consumers during the winter season to ensure that the higher network charge does not affect the final cost, which would otherwise be over a third higher.
“Consumers (households) will see the higher price only on paper but will not have to pay it,” Prime Minister Robert Golob stated at a press conference following last week’s government session.
What has changed?
By the end of February, the capped price will apply to all consumed electricity and will be lower than it is now. The reintroduction of the contribution for renewable energy sources (RES) has also been postponed.
The government has adjusted and extended the regulation of electricity prices for households and small business consumers, so the new terms will be in effect from the beginning of November this year until the end of February 2025, coinciding with the winter season for network charges.
Under the new regulation, the capped price will apply to 100% of electricity consumption, compared to the current 90%. Additionally, the uniform capped price will be reduced from the current €98 to €77 per megawatt-hour (MWh), according to Bojan Kumer, the Minister for Environment, Climate, and Energy.
Furthermore, the RES contribution will no longer be reinstated on January 1st, as previously planned, but on March 1st. The regulation providing compensation to electricity suppliers for covering the difference between the market and regulated prices will also be extended until the end of February, the minister said.
The economy, however, will be left high and dry and, as Golob stated, will “have to pay the bills through higher network charges.”
The coalition is now quickly aligning itself with public sentiment, having transformed from a defender to a critic of the new network charge calculation method. At the same time, it insists that it has no influence over the Energy Agency.
Additionally, the governing coalition (Gibanje Svoboda, SD, and Levica) has submitted its own request for an urgent committee session to adopt a call for the Energy Agency to freeze the implementation of the new network charge system until it conducts a thorough analysis of the changes’ impact on the economy, households, and citizens’ broader social conditions.
The urgent session is scheduled for this week. The coalition has also announced the adoption of emergency legislation to assist businesses with network charges, which would take effect on January 1st of next year. However, when asked at the press conference about the specifics of this emergency law, no answers were provided.
Misleading the public for months
For months leading up to the implementation of the new tariff system for network charges, government representatives, led by Robert Golob, misled the public by claiming that the new system would not lead to price increases. This deception has now been confirmed by the government itself, as they have recently admitted – apparently realising the potential political fallout – that the new system will result in higher bills. Golob has even mentioned a potential 30% increase.
The opposition had been warning for months prior to the introduction of the new system that the new method of calculating network charges would lead to higher costs. However, government representatives denied this. “I must firmly refute this,” Infrastructure Minister Bojan Kumer said in January, adding, “If we have 900,000 metering points in Slovenia, for more than 800,000 households, this will be a cheaper method for the average household consumer.”
Members of the Gibanje Svoboda also rejected claims of price increases during a parliamentary session in October. “If the average consumer maintains the same habits, they will pay on average, annually, even one, two, or three percent less for network charges than they pay now,” said MP Tomaž Lah at the time. The party also stated on its website that the new system would not result in higher costs.
A month after the implementation of the new system, it has become clear that government representatives and the Gibanje Svoboda lied. They now admit that price hikes will occur. However, they are attempting to shift the blame onto the director of the Energy Agency, Duška Godina, claiming they were unaware of the agency’s plans. Golob even asserted that he had not discussed this topic with the agency’s director.
However, during a broadcast of the TV show Tarča, the director herself contradicted Golob. She stated that she had frequent discussions with the Minister for Environment, Climate, and Energy, Bojan Kumer, and that she met with Golob on June 22nd last year. “That was once last year when I presented him with the key changes and their effects on all consumer groups, especially households. And that was it. There was no opposition at that time,” she said.
The government was, therefore, well-informed about all the changes. However, when it realised that the new system could harm its political standing, it – along with the Prime Minister – began to feign ignorance.
The economy calls on the government for solutions
“The Chamber of Commerce and Industry of Slovenia (GZS) is following with concern reports from some companies about increases in network charges, which have consequently led to higher electricity costs based on the first bills issued under the new system. Since the beginning of this year, we have been warning that the reform does not take into account the specifics of Slovenia’s economic and energy context, and it is not based on economic analyses or assessments of its macroeconomic impacts,” said GZS General Director Vesna Nahtigal last week. In the press release, it was also noted that the first bills have confirmed that some companies will face electricity bills that are even three times higher. Nahtigal hopes that the government, when addressing the issue of electricity prices, will pay special attention to the negative effects of the new system on businesses, not just on households.
The GZS has been advocating for changes to the new network charge calculation system, arguing that it fails to account for industries operating 24/7 and service sectors such as retail and hospitality. “Adjustments are needed to allow greater flexibility in network charge calculations, especially for businesses, enabling companies to adapt their energy consumption more effectively.”
An analysis conducted by the GZS earlier revealed that total network charges for some consumer groups in medium and high voltage categories could increase by two to four times. According to the chamber, similar results have been reported by certain electric utilities or electricity suppliers.
The new methodology is unfair
The Chamber of Commerce and Industry of Slovenia (GZS) has outlined several reasons why the new methodology for calculating network charges is unjust. They argue that changes to the network tariff structure should be announced well in advance, giving consumers sufficient information for investment decisions. Moreover, large electricity consumers should not be burdened with distribution network charges since they are directly connected to the transmission network.
The GZS also highlights that, in the new tariff system, the increase in energy-related charges for high- and medium-voltage consumers connected to switchgear is disproportionate compared to the charges based on capacity. Lastly, they point out that, according to recommendations by the European Union Agency for the Cooperation of Energy Regulators (ACER), network charges should not be used as a funding source for network upgrades. Instead, they should be sustainable and reflect actual costs.
“We emphasise the violation of the cost-reflection criterion, as noted in the project report by the Milan Vidmar Electrical Institute. The report states that the new network charges create significant and disproportionate burdens for high- and medium-voltage consumers connected to switchgear, warranting reconsideration of how these costs are distributed,” the GZS wrote in a press release.
Vinko Vasle: Dirty manipulation on the edge
Retired journalist and editor Vinko Vasle: “I have been around too long – this government and this Golob have not convinced me in any way that they care about the people. No, they care about me, myself, and I.”
Vinko Vasle also commented on the manipulation by the authorities and the government’s decisions regarding electricity on the social network X. He wrote that “Golob, when the trust in him and his Svoboda party sank into the cesspool of left-wing lies, woke up from his long tourism slumber (Maldives) and realised that the poor people would be hungry and cold because of the network charges. And he raised his shrill voice, banging his shoe on the desk.” “This public performance was presented by depoliticised media as the Prime Minister’s great concern for the welfare of the people. Of course, many fell for it again, saying, Look, he cares about the little guy, not just the one in Murgle.” Vasle also added that the responsible minister Bojan Kumer had always been in close contact with Duška Godina from the Energy Agency. He reminded everyone that Janez Kopač, a former key member of Drnovšek’s LDS, also sits on the agency’s board and concluded that Kumer, Golob, and Godina played a dirty political drama on the public stage to raise Golob and his Svoboda party’s ratings.
Godina: Golob and Svoboda’s appointee
Duška Godina, the director of the Energy Agency, was, according to reliable sources, the first choice of the Svoboda party for mayor of the City Municipality of Maribor. Her husband also worked at the agency. When questions started arising about their political connections and the fact that they were in charge of the agency, they removed her from the position. According to our sources, there is great confusion within the agency, with employees allegedly leaving due to mobbing and other pressures.