The Slovak government approved on Wednesday the extension to 2025 of a system of capping electricity prices for households in order to limit the impact of electricity price increases in recent years.
The state implemented its program in 2023 and the Economy Ministry said prices had not fallen enough to allow the program to end.
Under the approved plans, the price of electricity, excluding distribution and other related costs, will be capped at 61 euros per megawatt hour (MWh), the ministry said.
According to him, Slovak households will save 267 million euros thanks to the extension of the ceiling.
Rising energy prices have been seen as a factor in inflation in 2025 in this central European country which is a member of the euro zone.
In September, the Council for Budget Responsibility (RRZ) forecast that inflation would reach 5.0% next year, partly due to increases in regulated energy prices and tax hikes that the government is putting in place as part of its deficit reduction plans.
Prime Minister Robert Fico’s left-nationalist government is tackling one of the euro zone’s largest budget deficits, estimated at around 6% of gross domestic product in 2024.
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