STA, 28 March 2022 - Prime Minister Janez Janša and his Croatian counterpart Andrej Plenković talked about cooperation in gas supply and the Krško nuclear power plant as they met in Zagreb on Monday. Talks will be resumed by the ministers in charge next week.

Potential for concrete cooperation will be discussed by Slovenian Infrastructure Minister Jernej Vrtovec and Croatian Economy Minister Tomislav Čorić as they meet in Zagreb next Monday.

The ministers will talk about expanding the pipeline from Lučko, a Zagreb suburb, to Zalog, on the eastern outskirts of Ljubljana, and to Logatec, south-west of the Slovenian capital. They will also discuss further cooperation on the Krško N-plant, which is owned jointly by the two countries.

"We're trying to find a common approach to supply, transport routes and the other necessary logistic. Gas, of course, is a small part of the energy we need for a normal life in Europe. Nuclear energy is also very important," said Janša.

The two countries see plenty of potential to cooperate in both energy areas when it comes to satisfying the needs of Slovenia as well as Croatia, he added.

Predsednik vlade ?? @JJansaSDS je prispel v Zagreb, kjer bo opravil delovno srečanje s predsednikom hrvaške vlade ?? @AndrejPlenkovic. pic.twitter.com/7CeUySOd6t

— Vlada Republike Slovenije (@vladaRS) March 28, 2022

"A large part of Europe is fully or partly dependent on energy imports from Russia, and anything that represents an alternative to these imports and dependency is a European priority at the moment," said Janša.

Slovenia would like to have enough capacities to be energy self-sufficient even in case of difficulties on the energy market. "As for our interest to lease capacities, the capacities that have been leased are leased, we're interested in additional capacities," said Janša when asked about lease of Croatian capacities.

Slovenia needs about a billion cubic metres of gas a year. The capacity of the gas pipeline from Lučko to Logatec would be 270 million m3, which Janša said represented an important share of Slovenian gas supply.

While Slovenia is short of gas, Croatia is short of electricity. The Croatian government expressed readiness to take part in the construction of a second reactor in Krško following the model of cooperation so far.

Janša said the relevant government departments would look into potential for cooperation to jointly invest in the second reactor.

The prime ministers also talked about other bilateral issues, including the fishing regime in the Bay of Piran. Plenković said the two countries deepened their relationship in recent years and would also ease them on that point so that fishers would not be fined by Croatian or Slovenian police.

Since Slovenia started implementing the border arbitration award declared by the arbitration tribunal in June 2017 the following year Slovenian police have fined vessels entering waters awarded to Slovenia illegally, while Croatia has been fining Slovenian vessels fishing in the part of the bay it continues to claim as its own because it does not recognise the border award.

The two prime ministers also touched on the refugee crisis with Janša expressing Slovenia's readiness to accept the number of Ukrainian refugees in proportion to its size and the size of its population.

"There're no tensions, all the problems that exist, even if they have for several years, we're solving quietly and to the satisfaction of both governments and nations," said Plenković.

He thanked Slovenia for supporting Croatia in joining the EU, Schengen zone and the efforts to become a member of the Organisation for Economic Cooperation and Development.

"You have all the support for membership in the integrations that Slovenia is already a member of and Croatia is still a candidate country for," said Janša.

The prime ministers also talked about cooperation in trade and tourism. The volume of bilateral trade has reached EUR 5.6 billion. Plenković noted that some 1,166,000 Slovenian tourists holidayed in Croatia last year.

This was the eighth time that Janša and Plenković have met in the past two years.

STA, 25 March 2022 - The government has issued a regulation on electricity self-supply from renewables that will abolish the net metering concept for solar systems that will be put in place from 2024 in line with an EU directive. The regulation also guarantees new ways to get incentives for electricity self-sufficiency, a move that comes after several NGOs urged this.

The regulation, adopted at Thursday's government session, also introduces a new regime for self-supply generators with a connection capacity of less than 50 kilowatts. The connection procedure has been streamlined for the owners of such installations, the Government Communications Office said.

The energy crisis relief law allows households, household communities and small businesses to install an electricity generator connected to the building's grid.

The main advantage of this self-supply system is that the amount of electricity taken from the grid and the amount put into the grid are balanced out, so the consumer pays only the difference if they have taken more than they have put into the grid. If they have taken less, they pay nothing except some charges.

Although the EU renewable energy directive promotes self-supply, the concept of net metering under the energy crisis relief law is not in line with the EU directive on the electricity market, which stipulates that in the future a grid charge will have to be levied for all electricity taken from the distribution grid.

As a result, those who enter the self-supply system after 31 December 2023 will no longer be eligible for net metering under the new regulation.

However, the basic concept of individual and community self-supply remains unchanged or has been upgraded by the act on the promotion of renewable energy sources and the regulation, as it provides exemptions and partial exemptions from certain levies, the possibility for all end-users connected to the grid to enter the self-supply system, and the possibility to receive investment aid in the form of grants.

The new Energy Agency regulations governing the grid charge are also expected to bring benefits for self-supplying homeowners and businesses, which will be essential as sufficient incentives will need to be provided to boost investment in electricity self-supply as much as possible, the government said.

On Monday, two environmental NGOs urged the government to provide at least EUR 100 million in incentives for electricity self-sufficiency and an upgrade of distribution systems to enable households to generate power from renewables, notably solar. They noted the government was not thinking long-term in its efforts to mitigate the energy crisis and was hindering the energy transition.

STA, 24 March 2022 - Prime Minister Janez Janša urged ending Europe's dependency on Russian energy as soon as possible, as he arrived at the EU summit in Brussels on Thursday afternoon. "This train is already on its way and has no return," he said.

Slovenia supports the decision, which will be probably adopted today, that Europe frees itself of Russian energy as soon this is feasible, said Janša.

"This unfortunately doesn't mean tomorrow. We support as fast a path as possible," he said. "This train is already on its way and has no return. This will probably happen later than we wish, but much sooner than Russia wishes."

Doorstep by @JJansaSDS, Prime Minister of #Slovenia, at today's #EuropeanCouncil #EUCO, in #Brussels.
“There is an open channel regarding discussion with #China trying to persuade them to support the #peace effort to bring peace in #Ukraine”https://t.co/Np7FKXlAu6

— EU Council TV News (@EUCouncilTVNews) March 24, 2022

Janša said that the European Commission will present some solutions today. "I can say that those of which we have already heard are effective to a large degree."

Ways of the US helping out with liquefied gas was discussed earlier in the day with US President Joe Biden, who is Brussels.

Some proposals were also given by the Ukrainian side when Janša and his Polish and Czech counterparts visited Kyiv on 15 March, Janša said.

These proposals contain very efficient sanctions on which opinions in Europe practically do not differ, he said.

At the NATO summit, which was held before the EU summit, sanctions concerning military affairs were discussed. Janša said Russia buys certain dual-use products as civilian products but uses them for military technology.

STA, 18 March 2022 - The energy group Petrol generated sales revenues of EUR 4.96 billion in 2021, which is up 61% year-on-year. Net profit was up by 72% to EUR 124.5 million, the parent company said in a press release on Friday. The management will propose a dividend of EUR 30 gross per share for 2021, in line with the adopted dividend policy.

The group last year posted EUR 543.4 million in adjusted gross profit, up 27% over 2020, while earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 43% to EUR 238.1 million.

The majority of this was driven by sales of petroleum products, a fifth was generated by sales of merchandise and related services, and the rest by sales of other energy products, energy and environmental solutions and the generation of electricity from renewable sources.

In 2021 the Petrol group earmarked EUR 233.2 million net for investments in property, plant and equipment, intangible assets and for long-term investments, reads the press release.

"Regional indicators show the strengthening of the Petrol group in Southeast Europe where it generated 28% of its operating profit and 31% of the EBITDA in 2021."

At the end of last year, the group's retail network comprised nearly 600 points of sale, of which almost a half were abroad.

The year was again marked by the Covid-19 pandemic and related restrictions. Another external factor affecting the company's operations last year was the energy crisis, which saw energy price hikes, especially in terms of electricity and natural gas, whose prices reached historic levels.

The group said it had managed to adapt to both factors and mitigate their negative effects, "and what is more, it has even exceeded the ambitious goals".

Under its 2021-2025 strategy, the group aims to diversify its operations towards the energy transition. "This segment's EBITDA accounted for 26% in 2021. As many as 62% of investments were earmarked for the energy transition."

On Thursday, the Petrol supervisory board proposed to the general assembly of Petrol shareholders a dividend for 2021 of EUR 30 gross per share, chief supervisor Janez Žlak and CEO Nada Drobne Popović announced in a separate statement.

Touching on the situation in Ukraine, the group said it had no subsidiaries or representative offices in Ukraine, Russia or Belarus.

It also explained that the share of sales revenue generated by the group in these markets was insignificant and that the procurement of energy products in these markets, with the exception of natural gas, represented a small share of Petrol's portfolio.

For Petrol, Russia as a source of supply in 2021 and the first two months of 2022 for diesel and extra light heating oil accounts for less than 7%. However, no petrol is imported from Russia, the group added.

STA, 16 March 2022 - The crisis situation in Ukraine is bringing uncertainty into the operations of all business entities and deepening the crisis due to high energy prices, the strategic council for energy transition at Slovenia's Chamber of Commerce (GZS) said on Tuesday, adding that there was no energy deficiency yet, but prices were highly volatile.

GZS head Aleš Cantarutti said that the current tense geopolitical situation in Europe had only deepened the energy crisis, as energy price hikes were also being translated into high transport prices and limited access to raw materials.

He added that Slovenia's latest energy crisis relief legislative package was "a plaster on the wound," but "energy price hikes since September last year are much higher than the aid foreseen, which does not take into account the damage actually suffered by companies".

Industry representatives pointed out that their strategic plans were geared towards decarbonisation, increasing energy efficiency and self-sufficiency, but that in such an extremely volatile environment, they are being forced to make very short-term decisions.

Slovenian companies are already deciding on a daily basis whether to operate at full or reduced capacity, or even to temporarily halt production because of increasing costs, they added.

The GZS's strategic council for energy transition also expects the government to follow EU directions to tackle the energy crisis and respond immediately with additional measures and support for the economy.

They expressed support to changes to the model of forming electricity prices to reduce dependence on gas prices, which have been pushing electricity prices up.

In the long term, the GZS wishes for the construction of facilities for renewable energy sources to be considered "public interest", as building such facilities has been a big problem in Slovenia.

As regards the measure to exempt all consumers from the payment of network fee, the participants of Tuesday's meeting highlighted the liquidity issues on the distribution side and expressed concerns about the stagnation of planned investments in electricity networks.

Meanwhile, the strategic council and Infrastructure Ministry State Secretary Blaž Košorok expressed satisfaction about Slovenia being a member of the European Network of Transmission System Operators for Electricity (ENTSO-E), which ensures a safe and secure energy supply.

They also discussed the impact of the planned integration of Ukraine's electricity system into the EU system. They assessed that such an operation entails certain technical, communicational and economic risks, as the country is currently at war and the infrastructure is damaged.

STA, 15 March 2022 - While the government decided to cap the prices of the two best-selling petrols, regular and diesel, for a month starting today, for heating oil only a temporary regulation of margins had been introduced, so the price went up by more than 24% today.

The price of heating oil went up from EUR 1.018 a litre to EUR 1.264, which is a 24.2% rise.

In the face of rising energy prices, the government introduced a temporary regulation of margins for distributors of heating oil at the start of the heating season in November 2021. Initially it was introduced for three months, and then extended by another three months in January.

Since February, excise duties on electricity and fuels, including heating oil, have been reduced to the lowest possible rate. But this does not necessarily mean lower prices, as the prices of raw materials went up significantly after Russia's attack on Ukraine.

Last November, when the margins were reduced, the price of heating oil dropped below one euro per litre. Then it rose somewhat and has been just over a euro this year. On Monday, it was EUR 1.018 a litre.

Meanwhile, the price of regular petrol is now capped at 1,503 per litre, about six cents below the lowest price at the pump on Monday, and diesel at EUR 1,541, roughly 13 cents cheaper. The new regime will be in place for at least 30 days.

STA, 14 March 2022 - The prices of the two best-selling petrols, regular and diesel, will be capped for a month starting today. Regular now costs 1,503 per litre, about six cents below the lowest price at the pump on Monday, and diesel is capped at EUR 1,541, roughly 13 cents cheaper.

The price cap was reintroduced by the government on Monday to arrest the surge in petrol prices following Russia's invasion of Ukraine, which led to rising global oil prices.

"The aim is to calm the situation on the motor fuels market," Economy Minister Zdravko Počivalšek said.

The price was capped based on calculations taking into account the seven-day representative average of prices that the Infrastructure Ministry sends to the European Commission.

The situation will be monitored during the next 30 days and the government will take further action if necessary.

The newspaper Finance assessed the government's decision will push fuel retailers into the red for at least this week.

Its calculations show that retailers are to lose more than 10 cents per litre of diesel sold and around 5 cents per litre of regular. Other costs included, the loss is even higher.

Since the demand at stations along the Italian border has now increased because the prices are much lower than in Italy, the losses of these stations will be even higher.

Retailers have so far been reserved in their reactions. OMV Slovenija told Finance that premium diesel had been removed from sale because its sale was no longer commercially viable.

Meanwhile, hauliers are happy with the capped prices, as fuel costs had accounted for a record 30% of all their costs after fuel prices went up by almost a third since the start of the year, according to Robert Sever from the Chamber of Commerce and Industry (GZS). Now they are down to 15%, he told the STA.

Finance has also calculated the effects of the government's decision on state revenue from excise duties on fuel. The state is to receive one cent fewer per litre of petrol, which is still one cent more than two weeks ago. For diesel the drop is two cents per litre, which is still one cent more than two weeks ago.

STA, 14 March 2022 - The government will adopt a regulation today to determine the maximum prices of fuel at service stations, Prime Minister Janez Janša told MPs, announcing reintroduction of regulated fuel prices from Tuesday.

Janša made the announcement in response to a question from Janja Sluga, the head of the group of unaffiliated MPs, about the government's moves in the face of energy and food price hikes.

The same pricing mechanism as had been in place until April 2016, when the first round of price liberalisation took place, will be used to calculate the prices. The government will not allow for any speculation on the fuel prices market, Janša said.

The move comes after a group of opposition and unaffiliated deputies filed a bill on regulation of prices of petroleum products last week.

Janša said the government had introduced several measures in the face of rising energy price, noting that electricity bills, which users were getting these days, were significantly lower.

"The government has suspended the paying of network fees and some other levies to significantly lower the expenses for the people and it will stay this way for a while," Janša said, adding that aid had been allocated to the most vulnerable groups.

As for the rising fuel prices, he said that panic had been caused, which had resulted in daily sales going up sixfold. He stressed there was no need for panic and that fuel supplies were sufficient.

Russian oil represents 12% of global supplies, and this can be quickly replaced, he said.

The government had been warning fuel retailers to disperse their sources but they still mostly signed contracts with Russian oil companies "because some traditions die hard and connections work", Janša said.

The government fully liberalised the fuel market in 2020, so fuel retailers have been free in setting the prices for all types of fuel since 1 October 2020.

In the face of rising energy prices and the then-upcoming heating season, the government introduced a temporary regulation of margins for distributors of heating oil in November 2021. Initially it was introduced for three months, and then extended in January.

STA, 8 March 2022 - The government will discuss rising fuel prices on Wednesday with two ministers assuring reporters on Tuesday that the government will step in to secure sufficient supplies from commodity reserves and a sustainable pricing policy.

Slovenia has sufficient reserves not to be hurt by somewhat prolonged disruption to supply of oil derivatives, Economy Minister Zdravko Počivalšek said during the government's visit to the north of central Slovenian region.

He spoke as prices at the pump hit all-time highs today as a result of the impact of the war in Ukraine. Long lines formed at service stations yesterday as people rushed to fill up and some pumps run out of fuel.

"In line with the intervention from the commodity reserves, we will decide how to ensure a sustainable pricing policy in the coming month. In any case, the state will make sure that the prices won't explode," he said.

The government will intervene if necessary both in terms of volumes and prices. A session dedicated to this issue will be held on Wednesday and the Economy Ministry is working on various scenarios for the future, Počivalšek said.

The Commodity Reserves Agency told the STA that it held a reserve of petroleum products that significantly exceeded the 90-day average consumption in Slovenia. The exact quantity of commodity reserves, including petroleum products, is confidential.

Prime Minister Janez Janša, joined by Počivalšek and Infrastructure Minister Jernej Vrtovec, held a meeting with the country's leading fuel retailers on Monday evening to discuss the stockpiles and supplies of oil derivatives over the next weeks and measures to ensure undisrupted supply even if supplies from Russia are suspended.

Počivalšek said the retailers briefed them on their reserves, supply flows and issues. "We in turn told them how we see a sustainable pricing policy in the future."

Meanwhile, Defence Minister Matej Tonin described an embargo on gas and oil imports from Russia as the most powerful tool available to the West to stop Russian war in Ukraine as it would get to the "very heart" of its financing.

Such a move would be the quickest to stop the war. Thus, Slovenia's position is that the sanctions should be stepped up to the maximum at once "even if it hurts us a little".

Given that Russia provides about 12% of global oil supplies, Tonin is confident that Slovenian oil traders can find new suppliers.

Slovenia could weather the period of delays and disruption to supply with oil reserves. "With reserves, we give oil traders room for manoeuvre to secure other sources," said Tonin.

Speaking of gas, he said there had been assurances from those responsible EU stockpiles were sufficient to get through the winter and spring as efforts were under way to replenish the stocks to the maximum extent.

Production could be stepped up by some European countries such as Norway while the EU is also in talks with the Arab world to increase supplies, he added.

The Chamber of Agriculture and Forestry urged the government today to secure farmers fuel to work the land from commodity reserves in case of disrupted supplies, warning that the fallout from the war was huge already.

STA, 8 March 2022 - Prices at the pump surged on Tuesday with both diesel and regular petrol reaching all-time highs due to high prices of oil on the global markets and the impact of the war in Ukraine.

Regular petrol cost between EUR 1,555 and EUR 1,564 and diesel was between EUR 1,662 and EUR 1,670 depending on provider. Along motorways prices are even higher, by a few cents on average.

Prices have been rising for several weeks but have now surged by up to five cents per litre in a single day and in some cases even more.

In anticipation of the price hike, there were long queues at service stations yesterday evening as people rushed to fill up, leading to fuel shortages at some smaller service stations.

Slovenia fully liberalised fuel prices in October 2020. Before that, only prices along motorways were fully liberalised.

Fuel retailers have said they have sufficient reserves and do not expect supply disruptions in the coming days.

Senior government officials held a meeting with top executives of the three largest fuel retailers in the country - Petrol, OMV and MOL - last night.

The government did not reveal the details of the talks beyond saying the discussion revolved around reserves and supplies in the coming weeks, and supplies in the event fuel shipments from Russia are interrupted.