News

We did not react flexibly to the energy crisis, the efficiency and cost-effectiveness of the measures were low

Bratislava, 5 April 2024 — Slovakia needs to change the legislation regulating energy sector practices during crisis periods. Rules for targeted compensation of electricity and gas prices during unforeseen situations, focusing on the most vulnerable groups, and setting time limits are necessary. The Supreme Audit Office of the Slovak Republic (SAO) strongly recommends these changes based on an audit focusing on the state's emergency energy measures in 2018-2022 and related periods. During the audited period, Slovakia's decision for across-the-board compensation and the absence of a system of targeted compensation proved to be highly inefficient and wasteful. By the end of last year, the Ministry of Economy had paid out almost EUR 2.7 billion in compensation for electricity and gas price increases in 2022 and 2023. The highest amount of funds, about 1.24 billion, was used to compensate households for gas prices. The national auditors warn that such broad compensation measures, which were not backed up by data when they were adopted, were inefficient and wasteful.

"This is not the final bill for compensatory aid, as the crisis regulation in the energy sector continues this year, and its termination is not provided for in the legislation at all. The compensations have helped, but it is time to think about their continuation," the SAO's Vice-chairman Jaroslav Ivančo pointed out. Although the compensatory measures have helped citizens and entrepreneurs, it is not possible and feasible to apply them on such a large scale and in the long term. "This is an enormous burden on the public budget, which will ultimately have to be paid by all of us. Each of us will ultimately have to pay back what we have been given many times over. We are simply not investing in development at the moment; we are just spending unwisely on aid that no longer meets the effectiveness criteria," Ivančo added. 

One billion of European funds was allocated for compensation with the consent of the European Commission, which Slovakia has not been able to use for other sustainable projects with significantly higher added value due to persistent problems with their efficient use. The National Authority for External Audit sent the conclusions of this audit to the Parliamentary Committee for Economy, Prime Minister Robert Fico, Minister of Economy Denisa Saková, the Office for Regulation of Network Industries (ÚRSO) and the Ministry of Finance.

The full text of the press release about this issue in Slovak language is available here.

 

Share: