Government gains upper hand against SPP

A new law increasing the government’s powers over utilities privatized under the previous administration will hurt Slovakia’s reputation among foreign investors, critics of the move have said.

(Source: SITA)

A new law increasing the government’s powers over utilities privatized under the previous
administration will hurt Slovakia’s reputation among foreign investors, critics of the move have said.

The law, passed in November, gives the government a veto over the domestic prices set by the SPP gas utility. Under the terms of the privatization deal signed in 2002, the state retained a majority stake in the utility while the foreign investors, E.ON and Gaz de France, were given management control.

However, the current Fico government is unhappy with SPP’s intentions to seek further consumer price hikes, and is expected to use the law to block future rises.

The German Chamber of Commerce, which claims to represent 270 companies employing 70,000 people, said the law unfairly changed the rules of the game. "The new law turns the fundamental and contractually guaranteed decision powers in energy companies upside down. The state, which is the 51-percent owner, will be able to significantly influence price policy of private investors,” the chamber said as quoted by Reuters.

"The new and retroactive change in signed contracts will not be without consequences for investment conditions in Slovakia.”

The Fico government has said that the private investors will continue to manage the company, with four out of seven seats on the board of directors.

Top stories

PM Eduard Heger

Non-vaccinated will not pay for tests for work, school or shops

Hundreds of people protested against the amendment that the parliament passed on Sunday morning.


14 h
Dancers perform in the streets of Trenčín, spotlighting the architecture of the city.

Slovakia will open a new institute, this time in Jerusalem

Culture, sports and travel stories rounded up in one place.


23. júl
The Office of the Public Defender of Rights flies the rainbow flag to mark the Bratislava Pride in 2021.

The pandemic has made it clear that we must stand together

International friends and partners of Slovakia celebrate Bratislava Pride.


24. júl

Bratislava Pride will take place online

It will be streamed on July 24 and accompanied by numerous music performances.


22. júl