Monitoring of Energy Legislation October 2024

See the most important legal news in the field of energy for the month of October 2024.

We would like to draw your attention to the current ongoing legislative processes regarding amendments to the energy regulations of the Regulatory Office for Network Industries (RONI) and the public consultation regarding amendments to selected parts of Document B of the SEPS Technical Conditions.

Another piece of news is the launch of the Green Solidarity project.

You can read more about these and many other interesting news in our monitoring for the month of October 2024, which you can also download in PDF format.

We wish you a pleasant reading!

1.          WHAT HAS CHANGED?

Note: In our monitoring of energy legislation, we monitor for you the changes to the above-mentioned legal regulations, which were published in the Collection of Laws of the Slovak Republic last month.

2.          YOU MIGHT BE INTERESTED

■    RONI Decree amending and supplementing the Gas Market Rules

On 9 October 2024, a comment procedure was initiated on the draft RONI Decree amending and supplementing RONI Decree no. 208/2023 Coll., establishing the rules for the functioning of the internal gas market, the content requirements of the operating rules of the network operator and the storage facility operator and the scope of commercial conditions that are part of the operating rules of the network operator as amended (hereinafter referred to as the "Gas Market Rules"), legislative process number: LP/2024/530.

The aim of the draft decree is to amend and supplement certain provisions of the Gas Market Rules, focusing on the regulation of:

• conclusion of gas supply contracts and contracts for joint gas supply,
• change of gas supplier, including time limits in the process of changing gas supplier,
• content requirements of the gas supply invoice and the method of determining the status of the designated meter.

The proposed amendments result from amendments to Act no. 250/2012 Coll. on regulation in network industries (hereinafter referred to as the "Regulation Act") and Act no. 251/2012 Coll. on energy and on amendments and supplements to certain acts (hereinafter referred to as the "Energy Act"), which were amended by Act no. 109/2024 Coll.

The draft decree is to enter into force on 1 January 2025.

The current status of the legislative process, which is currently in the evaluation stage of the comment procedure, can be followed at this link.

■    RONI decree amending and supplementing the Price decree in the gas industry

On 9 October 2024, a comment procedure was initiated on the draft RONI decree, which amends and supplements RONI decree no. 147/2024 Coll., establishing price regulation of regulated activities in the gas industry and some conditions for the performance of regulated activities in the gas industry (hereinafter referred to as the "Price decree in the gas industry") under the legislative process number LP/2024/529.

The purpose of the draft is to amend and supplement some provisions of the Price decree in the gas industry, namely:

• to determine the method of implementing price regulation of access to the storage tank and gas storage,
• details on the calculation of the price for access to the storage tank and gas storage,
• the method of submitting the price proposal and the documents for the price proposal for access to the storage tank and gas storage,
• details on determining the price for the trader's services in the supply of gas to the end consumer of gas for heat production and heat supply.

The proposed modifications resulted from changes to the Regulation Act and the Energy Act, which were amended by Act no. 128/2024 Coll.

The draft decree is to enter into force on 1 January 2025.

The current status of the legislative process, which is currently in the evaluation stage of the comment procedure, can be followed at this link.

■     RONI decree amending and supplementing the Price decree in thermal energy

On 10 October 2024, a comment procedure was initiated on the RONI draft decree, which amends and supplements the RONI decree no. 312/2022 Coll., establishing price regulation in thermal energy as amended by Decree no. 141/2024 Coll. (hereinafter referred to as the "Price decree in thermal energy") under legislative process number: LP/2024/539.

The need to draft a decree arose due to the adoption of Act no. 128/2024 Coll., which amends and supplements the Regulation Act and amends and supplements certain acts.

Specifically, the addition of Sec. 69 (2) (z) to the Energy Act imposes an obligation on the gas supplier to supply gas to the end consumer of gas for heat production and heat supply at a price that may not be higher than the value established by RONI in a generally binding regulation. This has an impact on the application of the Price decree in thermal energy when determining maximum heat prices.

In view of the above-stated, the draft decree amends the provisions relating to economically justified costs in the price of heat. The draft decree does not fundamentally change the scope and structure of economically justified costs, or the method of implementing price regulation, but establishes the maximum amount of economically justified costs for the purchase of gas for the calculation of economically justified variable costs.

In addition, the draft decree replaces the term "affiliated company" with the term "linked company", by supplementing the basic terms.

The draft decree is to enter into force on 1 January 2025.

The current status of the legislative process, which is currently in the evaluation stage of the comment procedure, can be followed at this link.

■    RONI Decree amending and supplementing the Electricity Market Rules

On 21 October 2024, a comment procedure was initiated on the draft decree of the Regulatory Office for Network Industries (hereinafter referred to as "RONI"), which amends and supplements the RONI Decree no. 207/2023 Coll., establishing the rules for the functioning of the internal electricity market, the content requirements of the operating rules of the system operator, the organizer of the short-term electricity market and the scope of commercial conditions that are part of the operating rules of the system operator as amended (hereinafter referred to as the "Electricity Market Rules"), legislative process number: LP/2024/574.

The aim of the draft decree is to amend and supplement certain provisions of the Electricity Market Rules, focusing on regulation of the details of:

• concluding electricity supply contracts and contracts for joint electricity supply,
• changing the electricity supplier, including time limits in the process of changing the electricity supplier,
• the content requirements of the electricity supply invoice.

The termination date of the comment procedure is 11 November 2024.

The draft decree is to enter into force on 1 January 2025.

The current status of the legislative process, which is currently in the comment stage, can be followed at this link.

■    RONI Decree amending and supplementing the Price Decree in the Electric Energy Industry

On 21 October 2024, a comment procedure was initiated on the draft RONI Decree, which amends and supplements RONI Decree no. 154/2024 Coll., establishing price regulation in the electric energy industry and certain conditions for the performance of regulated activities in the electric energy industry (hereinafter referred to as the "Price Decree in the electrici energy industry"), under the legislative process number: LP/2024/573.

The aim of the draft decree is to amend and clarify some provisions of the Price Decree in the electrici energy industry, in particular:

• scope, structure and amount of economically justified costs,
• calculation of the net costs of the obligation in the general economic interest for the regulated entity,
• application of the system operation tariff, including the individual system operation tariff rate,
• calculation of the excess of reserved capacity and maximum reserved capacity,
• adjustment of the price regulation of the supply of reactive electricity and the supply of electricity for island facilities,
• adjustment of the technical useful life of assets due to the harmonisation of the reporting of asset depreciation within other network industries.

The draft decree is to enter into force on 1 January 2025.

The current status of the legislative process, which is currently in the evaluation stage of the comment procedure, can be followed at this link.

■     Decree amending the RONI decree establishing the temperature of hot water at the off-take point and the rules for calculating costs for the amount of heat produced and supplied

On 22 October 2024 in the electronic collection of laws there was an update of the information on the draft RONI decree amending and supplementing decree no. 503/2022 Coll., which establishes the temperature of hot water at the off-take point and the rules for calculating costs for the amount of heat supplied in hot water, costs for the amount of heat supplied for heating, costs for the amount of heat supplied or the amount of heat produced in a decentralized heat source and economically justified costs for heat produced in a decentralized heat source, under the legislative process number: LP/2024/217.

The aim of the draft is to strengthen the ability of owners of apartments and non-residential premises to make decisions when taking into account the range of economically justified costs for decentralized heat sources in connection with the performance of the administration.

The draft proposes to clarify the provisions on the redistribution of heating costs for apartments and non-residential spaces with individual heat preparation in apartment buildings with a favourable, but also with a disadvantageous location. At the same time, the draft of the decree responds to the modifications of Sec. 17e (4) of Act no. 355/2007 Coll. on the Protection, promotion and development of public health and on the amendment of some laws increasing the minimum temperature of hot water at the off-take point.

In addition, the draft should also address some other problems identified within application practice.

The date of effectiveness of the decree is proposed to be 15 December 2024.

The current status of the legislative process, which is currently in the evaluation stage of the comment procedure, can be followed at this link.

■     Draft Act amending and supplementing the Act on excise duty on electricity, coal and natural gas

On 23 October 2024, in the electronic collection of laws there was an update of the information on the draft act amending and supplementing Act no. 609/2007 Coll. on excise duty on electricity, coal and natural gas and on the amendment of Act no. 98/2004 Coll. on excise duty on mineral oil as amended (hereinafter referred to as the "Act on Excise duty on electricity, coal and natural gas"), under legislative process number: LP/2024/496.

The primary aim of the draft act is to support the production of electricity from RES, motivate potential producers, reduce the burden on the environment and strengthen the energy security of the Slovak Republic.

The purpose of the draft act is to provide relief to citizens and legal entities that have small sources of electricity by exempting them from (i) the obligation to pay tax and (ii) proving the guarantee of the origin of electricity from renewable energy sources (RES).

According to the draft act, the threshold for a small energy source increases from the current 10 kW to 50 kW.

According to the current wording of the Act on Excise duty on electricity, coal and natural gas, the tax exemption applies only if the energy is produced from RES and if its production is proven by a guarantee of the origin of the electricity from RES. The draft act proposes to exempt small sources from the obligation to prove the guarantee of the origin of electricity, which should simplify and speed up the process of their use.

The electricity tax exemption for small sources is intended to reduce the financial burden on households and legal entities that have invested in alternative energy sources such as solar panels, small wind turbines and the like. Inter alia, this relief is intended to contribute to people's energy self-sufficiency.

The draft act is to enter into force on 1 January 2025. The interdepartmental comment procedure was terminated on 3 October 2024.

The status of the current legislative process can be followed at this link.

■     Draft RONI Decree establishing quality standards for electricity transmission, electricity distribution and electricity supply

         On 30 October 2024, in the electronic collection of laws there was an update of the information on the draft RONI decree amending and supplementing the RONI decree no. 236/2016 Coll., establishing quality standards for electricity transmission, electricity distribution and electricity supply, under legislative process number: LP/2024/477.

         The proposed amendment should bring:

• clarification of the definitions of individual quality standards,
• addition of new quality standards, in order to increase the protection of electricity consumers, it is proposed to tighten the existing quality standards and the required levels of compliance with them,
• modification of the method of calculation and the amount of compensation payments, as well as the method and conditions of their payment,
• modification of tracking, recording, evaluation of quality standards,
• modification of recording compensation payments,
• publication of evaluation of quality standards and compensation payments.

The draft decree should also take into account changes in the primary legislation as well as the experience that resulted from the application of quality standards in practice.

The draft decree is to enter into force on 1 January 2025.

The status of the current legislative process can be followed at this link.

■     Draft RONI decree establishing quality standards for gas storage, gas transportation, gas distribution and gas supply

       On 29 October 2024, in the electronic collection of laws there was an update of the information on the draft RONI decree amending and supplementing the RONI decree no. 278/2012 Coll., establishing quality standards for gas storage, gas transportation, gas distribution and gas supply as amended by Decree no. 233/2016 Coll., under legislative process number: LP/2024/480.

The proposed amendment should bring:

• clarification of the definitions of individual quality standards,
• addition of new quality standards, in order to increase the protection of gas consumers, it is proposed to tighten the existing quality standards and the required levels of compliance with them,
• modification of the method of calculation and the amount of compensation payments, as well as the method and conditions of their payment,
• modification of tracking, recording, evaluation of quality standards and recording of compensation payments,
• publication of evaluation of quality standards and compensation payments.

The draft decree should also take into account changes in the primary legislation as well as the experience that resulted from the application of quality standards in practice.

The draft decree is to enter into force on 1 January 2025.

The status of the current legislative process can be followed at this link.

■     Draft RONI Decree establishing quality standards for heat supply

On 29 October 2024, in the electronic collection of laws there was an update of the information on the draft RONI decree amending and supplementing the RONI decree no. 277/2012 Coll., establishing heat supply quality standards as amended by Decree no. 234/2016 Coll., under legislative process number: LP/2024/481.

The proposed amendment should bring:

• clarification of the definitions of individual quality standards, in order to increase the protection of heat consumers and increase the quality of services provided by regulated entities, it is proposed to tighten the existing quality standards,
• modification of the method of calculation and amount of compensation payments as well as the method and conditions of their payment.

The draft decree should also take into account changes in the primary legislation as well as the experience that resulted from the application of quality standards in practice.

The draft decree is to enter into force on 1 January 2025.

The status of the current legislative process can be followed at this link.

■    New specification of support activities in the form of a subsidy for the field: Elimination of the consequences of extraordinary deterioration of water quality or extraordinary threat to water quality threatening or damaging the environment - Accidents

On 23 October 2024, Envirofond published on its website a new Specification of activities for the field: Elimination of the consequences of extraordinary deterioration of water quality or extraordinary threat to water quality threatening or damaging the environment - Accidents.

The specification is available at this link.  

You can learn more HERE.

■    SEPS published the document "Tender documents for the procurement of PpS for 2025 - Questions and Answers"

The company Slovenská elektrizačná prenosová sústava, a.s. (hereinafter referred to as "SEPS") published information on its website on 7 October 2024 about the publication of a document with the final version of questions and answers to the published "Tender documents for the procurement of support services for the year 2025".

The final version of the document is available at this link.

■     Envirofond has published a new call for businesses exposed to the risk of carbon leakage

On 8 October 2024, Envirofond published on its website a new Call K-1/2024 for the submission of applications for subsidies to operations that are expected to be exposed to a real risk of carbon leakage due to significant indirect costs that actually arise from the projection of costs related to greenhouse gas emissions into electricity prices.

The aid under the scheme is to be provided on an annual basis in the form of compensation in the year following the year in which the costs were incurred.

The time limit for submitting applications is 9 December 2024.

The text of the call is available at this link.

You can learn more HERE.

■    SEPS informs about the publication of the tender for the procurement of support services

On 11 October 2024, SEPS published information on its website that a tender for the procurement of support services for the period 1 November 2024 – 30 November 2024 was published in the Damas Energy information system on 14 October 2024.

Information is available HERE.

■    The Ministry of Economy informs about a new call aimed at increasing the energy efficiency of public buildings in the Horná Nitra region

On 14 October 2024, the Ministry of Economy of the Slovak Republic (hereinafter referred to as the "Ministry of Economy"), in cooperation with the Slovak Innovation and Energy Agency (hereinafter referred to as the "SIEA"), announced a call for applications for a contribution from the Slovakia Program aimed at increasing the energy efficiency of public buildings in the Horná Nitra region.

The call is aimed at supporting administrative buildings, schools, hospitals, sports halls and other public buildings that have the potential to achieve at least 30% primary energy savings. This approach is intended to ensure reduced energy costs and increased comfort for the region's citizens.

Eligible for support under the call are projects listed in the List of Strategic Project Intentions for the Just Transition Fund approved by the Partnership Council of the Trenčín Self-Governing Region.

The call allocates more than 15 million EUR from the Just Transition Fund.

You can learn more HERE and at this link.

■     RONI has published a list of electricity producers who are in arrears with the payment

RONI has published an updated list of electricity producers on its website according to Sec. 3b (5) and (6) of Act no. 309/2009 Coll. on the Support of renewable energy sources and highly efficient cogeneration and on the amendment of certain acts (hereinafter referred to as the "Support Act"), who are in arrears with the payment of registered arrears to the tax office, the customs office, with the payment of registered arrears on insurance premiums for social insurance and registered overdue receivables from the health insurance company.

The list is available HERE.

Producers of electricity from RES for the period in which they are registered as debtors in this list are not entitled to support in the form of a feed-in tariff. However, this is only a temporary suspension of the payment of the feed-in tariff, which results from the provision of Sec. 3b (5) of the Support Act, according to which "an electricity producer with the right to support cannot exercise the right to support for electricity production facility in the form of a feed-in tariff or surcharge during the period of delay with the payment of registered arrears towards the tax office, the customs office, with the payment of registered arrears on social insurance premiums and registered overdue receivables from the health insurance company according to special regulations".

However, this sanction does not have the character of a complete loss of the right to support in the form of a feed-in tariff. It applies that if the electricity producer incurs arrears towards the above-mentioned authorities, the right to support in the form of a feed-in tariff does not disappear permanently as a whole, but only for the period of delay in fulfilling their tax and contribution obligations. As soon as the producer pays their obligations, the support in the form of a feed-in tariff will start to be provided to them again.

More detailed information is published on the RONI website at this link.

■     Change in methodology for short-term market algorithms approved by ACER

On 15 October 2024, OKTE informed on its website that on 23 September 2024, ACER, by Decision No. 11/2024, adopted a change in the methodology for algorithms for the day and intraday market, including a draft common set of requirements.   

New version of the methodology for algorithms is available HERE.

You can learn more HERE.

■    SEPS informs about the publication of a medium-term tender for the procurement of support services

On 23 October 2024, SEPS informed on its website that the I., II. and III. rounds of the Medium-Term Tender for the Procurement of Support Services for the period 1 January 2025 – 31 December 2025 were published in the Damas Energy information system on 24 October 2024.

You can learn more HERE.

■     OKTE informed about the announcement of the auction of guarantees of origin of electricity

On 24 October 2024, OKTE announced on its website the announcement of an electronic auction for guarantees of origin of electricity from renewable energy sources and guarantees of origin of electricity produced by highly efficient cogeneration. The auction took place on 7 November 2024.

Information on the number and type of guarantees of origin offered in the auction, as well as on the course of the auction itself, is available at this link.

You can learn more HERE.

■    RONI published a decision determining prices and tariffs for the provision of support services for SEPS for the year 2025

Decision no. 0001/2025/E was published on the RONI website, by which the RONI determined the prices and tariffs for the provision of support services for the transmission system operator for the year 2025.

The RONI decision is available at this link. 

■     SIEA maps the readiness of Slovak companies for decarbonization (CREDIT4CE project)

On 24 October 2024, SIEA announced on its website the first project task within the international CREDIT4CE project - mapping the readiness of Slovak companies for decarbonization.

The CREDIT4CE project, funded by the Interreg Central Europe program, is coordinated by SIEA. Together with partner organisations, they carry out a comprehensive mapping of the decarbonisation status of manufacturing SMEs.

SIEA states that after mapping the readiness of Slovak businesses for decarbonization, SIEA, together with 9 partners, is to prepare a decarbonization guide and through a unique digital platform, connect small and medium-sized enterprises with companies that provide support and innovative solutions.

The mapping is to be carried out in the form of a questionnaire containing information about what affects the climate footprint of manufacturing companies, as well as questions about decarbonization plans and awareness of available financing options.

The registration form, through which companies can apply to participate in the project, is available at this link. SIEA will then inform interested parties about the launch of the decarbonization hub and invite them to cooperate.

More information is available at this link.

■     SIEA announces the launch of the Green Solidarity project

On 24 October 2024, SIEA announced on its website that the Ministry of Economy of the Slovak Republic and SIEA are launching the Green Solidarity project to reduce energy costs for low-income households from 28 October 2024.

Households that meet the conditions can now apply for support for the purchase of equipment using renewable energy sources. SIEA states that the contribution in the form of a voucher can cover up to 90% of eligible expenses for the purchase and installation of equipment – photovoltaic panels, solar collectors and biomass boilers.

SIEA reports that 28.4 million EUR from European and national sources have been allocated to the Green Solidarity project.

We informed you in more detail about the Green Solidarity project in our monitoring for the month of August 2024.

More information about the Green Solidarity project is available at this link.

■     SEPS informs about public consultations on the amendment of Document B of the Technical Conditions

On 29 October 2024, SEPS announced a public consultation on amendments to selected parts of Document B of the Technical Conditions for Access and Connection.

The subject of public consultation is supposed to be, in particular, the following amendments to Chapter 3 (Assessment of the quality of provided support services) of Document B of the Technical Conditions:

• changes in the assessment of quality criteria from hourly to quarterly resolution for supporting services of the aFRR±, mFRR3± and partially FCR types,
• changes in the assessment of available power of supporting services of the FCR, aFRR± and mFRR3± types from hourly to quarterly resolution,
• corrections in the numbering of signals in Chapter 2.7 in Table B2.1 and in the signal descriptions.

The public consultation lasted until 13 November 2024.

More information is available at this link.

■     SIEA informs about the amount of funds requested in the call aimed at supporting energy efficiency and the use of RES in public buildings

On 30 October 2024, information was published on the SIEA website about the amount of funds requested in the call of the Slovakia Program aimed at reducing energy intensity and using renewable sources in public buildings with the code PSK-SIEA-002-2023-DV-EFRR - 36th evaluation round.

SIEA reports that 730 applications were submitted within the call as of 25 October 2024. The call remains open. More information can be found HERE.

You can download the monitoring for the month of October 2024 in PDF format here.

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Legal notice

The information provided to the subscriber as part of the monitoring of energy legislation is not a source of legally binding legislation, as only the collection of laws of the Slovak Republic contains the legally binding wording of the legislation in terms of the legal code of the Slovak Republic. The information provided to the subscriber is only informative and does not replace legal service pursuant to the Act no. 586/2003 Coll. on advocacy. The law firm POLÁČEK & PARTNERS s. r. o. is not responsible for the completeness and accuracy of the information provided in the energy legislation monitoring. In case of questions regarding the information provided to the subscriber, the subscriber can ask the law firm POLÁČEK & PARTNERS s. r. o. for the provision of legal services for this purpose.