The Slovak government has recently approved a new levy on surplus revenues for electricity producers, which may also apply to the companies that sell and purchase electricity on the territory of Slovakia. The government has approved such legislation based on an EU Council Regulation, which orders member states to tax and distribute the extra profits of selected power plants to consumers.

The subject matter of the special levy shall be the surplus revenues (a positive difference between the market revenues of producers per MWh of electricity and the cap on market revenues of 180 EUR per MWh of electricity) and the levy shall be in the amount of 90 % of the surplus revenues. The levy periods for the surplus revenue levy shall be the respective calendar months between 1 December 2022 and 31 December 2024.

The draft amendment to the energy act is still subject to approval by parliament.

CHAPTER THREE

LEVY ON SURPLUS REVENUE

Part 1

Levy

§ 25a

Levy payer

(1) A domestic natural person, a domestic legal person, a foreign natural person, a foreign legal person or a foreign entity50a) pursuant to a special regulation,50b) shall be the payer of the levy on excess revenues if it produces electricity in a facility for the production of electricity in the territory of the Slovak Republic on the basis of a permit issued pursuant to § 6(2)(a) or on the basis of the fulfilment of the notification obligation pursuant to § 6(6).

(2) A domestic natural person, a domestic legal person, a foreign natural person, a foreign legal person or a foreign entity shall also be subject to the levy if

(a) purchases and sells electricity in the territory of the Slovak Republic on the basis of a permit for the supply of electricity pursuant to § 6(2)(a),

(b) is directly or indirectly linked pursuant to a special regulation50c) with another levy payer pursuant to paragraph 1 and

(c) supplies electricity to the wholesale electricity market.

§ 25b

Subject matter of the levy

(1) The subject matter of the excess revenue levy shall be excess revenue.

(2) For the purposes of the excess revenue levy, excess revenue means the positive difference between the market revenue and the market revenue ceiling.

(3) For the purposes of the levy on excess revenue, market revenue means market revenue pursuant to a special regulation,50d) in the case of electricity produced in the territory of the Slovak Republic and delivered to the electricity grid, excluding delivered control electricity.

(4) The method of determining the amount of excess income by the levy payer on the basis of revenues from the sale of generated electricity, including the impact of hedging transactions of such revenues from the sale of electricity and the method of proving the amount of the levy shall be established by the Government by regulation.

(5) In determining the levy period for market income, all market income for electricity supplied in that period shall be taken into account, irrespective of when payment for such supply occurs.

§ 25c

Exclusion from the subject matter of the levy

(1) Excess income shall not be subject to the excess income levy in respect of the sale of electricity generated

(a) in an electricity generating installation with an installed capacity up to and including 0.9 MW,

(b) produced in pumped storage hydroelectric power stations; or

(c) from biomethane.

(2) Furthermore, the subject of the levy shall not be the excess income for redispatching pursuant to a special regulation54) and compensation for electricity not withdrawn.

§ 25d

Special provisions on linked levy payers

(1) Excess revenue shall not be subject to the excess revenue levy if the excess revenue from the sale of electricity is earned by a levy payer if that electricity is subsequently supplied to the wholesale electricity market by another levy payer that is directly or indirectly connected to it, to the extent of the levy liability incurred in respect of that electricity by the levy payer that supplied that electricity to the wholesale electricity market.

(2) A levy payer who has generated electricity subsequently supplied to the wholesale electricity market by another levy payer which is directly or indirectly linked to it shall be liable for the excess revenue levy or the advance payment of that levy paid by the levy payer who supplied that electricity to the wholesale electricity market.

§ 25e

Amount of the levy

The excess revenue levy shall be 90 % of the excess revenue.

Should you have any further questions with respect to the draft bill, do not hesitate to contact us.