Slovenia caps electricity prices from 1 September

The government also declared the first level of emergency in electricity production in preparation for winter

Electricity tariffs in Slovenia will be frozen from 1 September for a period of one year as a way to help out households and small businesses in the context of surging inflation and multiple crises. The country’s government announced the news at a press conference on 14 July together with the declaration of the first level of emergency in electricity production.

Reportedly, prices will be kept low through a combination of lower duties and measures that will reduce the profits of power generation companies. The positive effect for the small-scale consumer in Slovenia will be savings in the range of 15 to 60% on their bills, depending on their utility provider.

The government will lean into solar power expansion

Electricity prices for households and small businesses, including those in multi-apartment buildings, will be limited to EUR 0.118 per kWh at the higher tariff, EUR 0.082 kWh at the lower tariff and EUR 0.098 per kWh at the uniform tariff.

In absolute terms, the regulation of electricity prices means EUR 110 to EUR 334 in savings in the annual cost of electricity for the average household customer or up to EUR 1,000 per year.

"These customers have so far been among the most affected groups of customers," commented Bojan Kumer, Slovenia’s Infrastructure Minister, as quoted by Total Slovenia News. He added that the final cost of electricity on bills would be reduced for all household and small business customers, regardless of the supplier.

The authorities also announced that it will be imperative to prepare the local grid network for the expansion of solar power generation – more specifically, 1 GW by 2025.

The solar facilities would be built to enable access to one-third of households in Slovenia through a community platform. The price will be known in advance so there will be no issues with expensive electricity for the next 40 years.