20.4.1. The Regulator
The Slovak Regulator is Regulatory Office for Network Industries, RONI, (Úrad pre reguláciu sieťových odvetví (ÚRSO)), established in 2001.100
20.4.2. The electricity industry structure
The main company in the Slovak Republic is Slovenske Elektrarne (SE), which owns about 85 per cent of the generating capacity, including the nuclear plants, which account for about a third of generation. The Energy Regulators Regional Association (ERRA),101 an association of energy
regulators in Eastern Europe reported that: ‘its position in the domestic generation market appears to
be even more dominant than these data suggested because SE also acts as a reseller of power purchased from other sources.’ In November 2005, ENEL bought a 66 per cent stake in SE, outbidding the Czech company, CEZ and the Russian company Inter RAO UES.
There are three distribution companies, Zapádoslovenské energetické závody (ZSE), Stredoslovenské energetické závody (SSE) and Vychodoslovenské energetické závody (VSE) covering the west, the centre and the east of the country respectively. Electricité de France (EDF) and RWE have each held 49 per cent stakes in SSE and VSE, respectively since 2002. Under privatisation agreements signed with EDF and RWE, they had the right to raise their shareholdings in the regional utilities if the government chose to sell its shares, but in February 2005, the Slovak government decided it would offer minority stakes in VSE and SSE via international tenders.
The third distributor, ZSE, was part privatised in 2002, with E.ON taking a 49 per cent stake. In 2003, E.ON sold 9 per cent to the European Bank for Reconstruction and Development (EBRD), but in September 2004, the Slovak government opened discussions with E.ON about doubling its stake to 81 per cent, a plan which was subsequently approved by the Slovak Cabinet but by April 2005, had not yet been completed. The transmission system operator is Slovenska Elektrizacna Prenosova Sustava (SEPS), which is fully state-owned by the national property fund.
20.4.3. The gas industry structure
Transmission, distribution and sale of natural gas in the Slovak Republic are carried out by Slovensky Plynarensky (SPP). Like Transgas of the Czech Republic, it major activity is transit of Russian gas to Western Europe, accounting for 45 per cent of its turnover with 70 per cent of Russia’s gas exports to Western Europe passing through the pipeline. It transits twice as much gas as Transgas. Local gas production is small and the vast majority its needs are met by Russian gas.
In March 2002, after a tender process in which only one bidder finally placed a bid, government decided to sell 49 per cent of SPP to a consortium of the French national gas company, GDF and the German gas company Ruhrgas (itself subject of a take-over bid by E.ON, the German utility). Once the stake has been acquired, the Russian gas company, Gazprom, will acquire up to a third of the consortium’s shares. The acquisition will not only expand the scope of the three companies involved, it will also increase security of supply for Gazprom to its Western European markets. The TSO and DSO functions of SPP are only separated from the commercial activities at a management level. 20.4.4. Progress with electricity liberalisation
One-third of eligible consumers’ consumption was liberalised from January 2003, another third from January 2004 and it was planned that the rest of the market would be open from January 2005. The Benchmarking Report claimed that 10 per cent of eligible consumers switched supplier in 2003. There is no wholesale market and given SE’s dominant position, it would make little sense to introduce one. 20.4.5. Progress with gas liberalisation
In theory, the gas market is 34 per cent open, but in 2003, the European Commission reported that no consumers switched supplier.
100http://www.urso.gov.sk/
20.5. Slovenia
20.5.1. The Regulator
The Regulatory body is the Energy Agency of the Republic of Slovenia (Javna agencija Republike Slovenije za energijo) set up in 2001 and covering electricity and gas.102
20.5.2. The electricity industry structure
The Slovenian electricity sector is composed of one generation company, five distribution companies and one transmission company. The generation plants are still publicly-owned, mostly in Holding Slovenske Elektrarne (SE), which includes the three largest hydro-electric plants and the largest thermal plants, but does not include the nuclear plant, Krsko (which accounts for about 20 per cent of Slovenia’s electricity production), which is jointly owned by the Slovenian and Croatian government. There are five distribution companies (Elektro Ljubljana, Elektro Maribor, Elektro Celje, Elektro Primorska and Elektro Gorenjska), all publicly owned. The publicly owned Elektro Slovenija (ELES) owns, operates and is the Transmission System Operator (TSO) for Slovenia.
20.5.3. The gas industry structure
The main gas company in Slovenia is Geoplin, which owns the gas grid and is responsible for the purchasing and wholesale of natural gas. It also transits Russian gas to Croatia. 19 municipal organisations carry out distribution to final consumers. Geoplin is 24.5 per cent owned by the state, 34.6 per cent owned by six of the regional distributors, with the rest owned by a range of shareholders including some of the other distributors.
In 1995 Italgas (part of Italian energy group ENI) bought a stake in one of the regional gas companies Adriaplin. Italgas now has 51 per cent with the remainder held by Austria's Steirische Ferngas and the Slovenian gas company Geoplin.
The TSO function of Geoplin is legally separate from the commercial activities, but the DSO functions are only separated at an accountancy level.
20.5.4. Progress with liberalisation: electricity
From 1 July 2004 onwards, all customers, except households, were considered to be eligible customers. The legislation classifies households as tariff customers until 1 July 2007. The Benchmarking Report claimed that 10 per cent of eligible consumers switched supplier in 2003. A wholesale market, Borzen,103 has been in operation since 2001, but the Benchmarking Report
suggests liquidity in this is less than 5 per cent. Borzen reported that in 2004, the total volume of trading reached 281GWh, which is 2.22 per cent of the total consumption in Slovenia in 2004.Volume on 20 April 2004 in the daily market was 96MWh, much less than 1 per cent of demand.
20.5.5. Progress with liberalisation: gas
The Slovenian gas market is said to be 91 per cent open but the European Commission reported that, in 2003, no consumers switched supplier.
102http://www.agen-rs.si/sl/