Act on the Promotion of Competitiveness and Decarbonization of Electro-Intensive Companies.
Country
Type of law
Legislation
Abstract
This Act establishes a mechanism for state aid to protect industrial stability while requiring technological modernization. The Act provides temporary financial relief for high electricity costs to specific industrial sectors. This support is intended to prevent the relocation of production and the associated loss of jobs due to international energy price volatility.
Access to the subsidy is restricted to companies that meet specific technical and economic criteria. Eligible entities must operate in designated energy-intensive sectors, maintain an annual electricity consumption of at least 15 GWh, and demonstrate an energy intensity where electricity costs represent at least 5% of their gross value added. Additionally, beneficiaries are required to implement and maintain a certified energy management system, such as ISO 50001, to ensure a baseline of operational efficiency.
The financial relief covers a maximum of 50% of a company's annual electricity consumption for the years 2026 through 2028. To maintain market integrity, the Act sets price floors and ceilings: the net price for subsidized electricity cannot drop below €50/MWh, and the aid itself cannot exceed half of the reference market price. All aid is issued as an advance payment with a subsequent mandatory reconciliation process to ensure that the total support remains within the legal limits and accounts for any other energy-related state aid received.
A core requirement of the Act is the obligation for recipients to reinvest at least 50% of the received funds into sustainable industrial upgrades. Permissible investments include on-site renewable energy generation, energy storage systems, hydrogen technologies, and the electrification of manufacturing processes to replace fossil fuel use. Compliance is monitored through mandatory reporting and inspections, with strict penalties—including the full return of aid and significant fines—for entities that fail to meet reinvestment targets or violate restrictions on corporate dividend payouts.
Access to the subsidy is restricted to companies that meet specific technical and economic criteria. Eligible entities must operate in designated energy-intensive sectors, maintain an annual electricity consumption of at least 15 GWh, and demonstrate an energy intensity where electricity costs represent at least 5% of their gross value added. Additionally, beneficiaries are required to implement and maintain a certified energy management system, such as ISO 50001, to ensure a baseline of operational efficiency.
The financial relief covers a maximum of 50% of a company's annual electricity consumption for the years 2026 through 2028. To maintain market integrity, the Act sets price floors and ceilings: the net price for subsidized electricity cannot drop below €50/MWh, and the aid itself cannot exceed half of the reference market price. All aid is issued as an advance payment with a subsequent mandatory reconciliation process to ensure that the total support remains within the legal limits and accounts for any other energy-related state aid received.
A core requirement of the Act is the obligation for recipients to reinvest at least 50% of the received funds into sustainable industrial upgrades. Permissible investments include on-site renewable energy generation, energy storage systems, hydrogen technologies, and the electrification of manufacturing processes to replace fossil fuel use. Compliance is monitored through mandatory reporting and inspections, with strict penalties—including the full return of aid and significant fines—for entities that fail to meet reinvestment targets or violate restrictions on corporate dividend payouts.
Attached files
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Date of text
Entry into force notes
This Act entered into force on the day following its publication in the Official Gazette of the Republic of Slovenia.
Repealed
No
Serial Imprint
National Assembly of the Republic of Slovenia.
Source language
English
Legislation Amendment
No
Original title
Zakon o spodbujanju konkurenčnosti in razogljičenja elektrointenzivnih podjetij (ZSKREP).