STA, 15 October 2021 - The price of diesel at petrol stations along Slovenian motorways has reached a record high of around EUR 1.49 per litre as soaring global oil derivatives prices have spilled over into the Slovenian market.

The previous record price of diesel was in October 2018, when drivers had to pay EUR 1.464 per litre, show Economy Ministry price data.

Currently, the average price at petrol stations on the Slovenian motorway network is EUR 1.49.

Elsewhere in the country, diesel costs from EUR 1.402 to EUR 1.472 per litre, depending on the location and the provider, according to the fuel prices website goriva.si.

This means that the price of diesel at petrol stations outside of the motorway and expressway network increased by more than 44% since the liberalisation in October 2020, when both diesel and regular petrol cost around a euro per litre.

The price of regular petrol has increased by 33% on average since the full liberalisation.

The two largest retailers, Petrol and OMV, currently sell it at EUR 1.333 and EUR 1.334 per litre, respectively, outside the motorway network.

Regular petrol is even more expensive along motorways, with the current price set by the two providers at around EUR 1.389 per litre, which is nevertheless still below the of EUR 1.576 recorded in September 2012.

The Economy Ministry says it is closely following the situation in the market, noting that the prices in Slovenia are not much different than in other EU member states and are in line with forecasts made before the market was fully liberalised.

"The higher prices of fuel are not a consequence of price liberalisation, but of high prices of crude oil in global markets," the ministry told the STA on Friday.

Asked in what case the state would decide again to intervene in the market and how, the ministry said that the control mechanisms for detecting possible disputable practices were contained in the prevention of restriction of competition act.

It noted that the Competition Protection Agency was in charge of supervising the market, adding that it would intervene if it detected certain irregularities that would demand action according to the law.

STA, 14 October 2021 - The government got acquainted with the current price trends in energy markets on Thursday and decided not to take any action for now. Infrastructure Minister Jernej Vrtovec said there was no reason to panic. 

"Slovenia is on the safe side for now, but it is absolutely necessary to invest more in renewables and in new nuclear technologies," Vrtovec said after the cabinet session.

The government set up a task force led by Vrtovec to keep an eye on the situation. It also got acquainted with the toolbox of measures presented by the EU Commission yesterday to tackle high prices.

"It determined there is no need at this point for Slovenia to take any action. But if that is required, we are ready," he said.

The statement comes after energy group Petrol announced it would raise electricity prices by 30% and gas prices by 12% as of December.

A few weeks ago, a small electricity provider announced it was ceasing operations and urged customers to switch providers.

Asked about this, Vrtovec said the market was working: "Don't panic, switch the provider."

STA, 12 October - Ten EU countries, Slovenia included, have asked the EU Commission to recognise nuclear power as a low-carbon energy source that should be part of the Union's transition towards climate neutrality and help reduce the bloc's energy dependence.

The ten countries say nuclear is a "key affordable, stable and independent energy source" that could protect EU consumers from being "exposed to the volatility of prices," Euronews has reported.

"While renewable energy sources play a key role for our energy transition, they cannot produce enough low-carbon electricity to meet our needs, at a sufficient and a constant level," the letter says.

The signatories also highlight nuclear as a way of improving the bloc's energy independence. "The rise of energy prices have also shown how important is it to reduce our energy dependence on third countries as fast as possible," reads the letter.

Commenting on the letter, Slovenian Infrastructure Minister Jernej Vrtovec wrote on Twitter that nuclear energy was "crucial for energy independence. More and more countries now realise that."

Slovenia's sole nuclear power station in Krško accounted for 45% of all energy produced in Slovenia last year. Plans have already been set in motion to replace the ageing reactor with a new unit.

Commenting on the matter during a visit with Slovenian automotive suppliers in Idrija, Prime Minister Janez Janša said it would be impossible to provide sufficient supply of the population or achieve carbon-free society by 2050 without increasing production at nuclear power plants in Europe.

The countries that will not opt for nuclear energy for one reason or another will have to abandon their reservations about those who will or else the formula will not work out, said Janša.

He noted that nuclear energy is a political issue and one involving prejudice because of disasters such as the one in Chernobyl in 1986. "However, it's necessary to realise that since Chernobyl the technology has become more advanced and safety mechanisms have become much better."

Janša agrees that nuclear plants are not fully sustainable due to the problems of fuel and waste, but he said "all that is solvable".

"Either we opt for nuclear energy or we burn candles, a consideration will have to be made what poses a greater risk to the civilisation," said Janša.

STA, 12 October - Petrol, Slovenia's largest energy company, will significantly increase the prices of electricity and natural gas on 1 December. The price of electricity is expected to rise by around 30% and of natural gas by 12%, with Petrol citing higher energy prices on international markets as the reason.

"We have recently witnessed exceptional conditions on the commodity and energy markets, where prices are reaching record high levels day after day," Petrol said when announcing the new price list last week.

According to media calculations, the price of electricity for households will rise by 21% to 35%, depending on the tariff. For small business consumers, prices will be around 30% higher, while the price of gas is expected to rise by 12%.

Prices of energy products to be delivered in 2022 have risen significantly in the last year: electricity by more than 175%, gas by almost 300%, oil by around 65% and emission allowances by more than 125%, Petrol added.

They pointed to last year's relatively long and cold winter, which depleted gas supplies across Europe, as one of the reasons for the situation.

The development of Covid-19 vaccines had reignited economic activity and energy demand, but supply has not been able to keep up, not least because of the poor production of electricity from renewable sources over the summer.

Natural gas supply also remains a major problem, with storage capacities being underused across Europe.

"Despite the turbulent market environment, we remain committed to offering a quality, reliable and affordable supply of electricity and natural gas," Petrol said.

"The new price list will apply for our residential and small business customers as of 1 December," the company added.

According to the newspaper Finance, other suppliers are unofficially expected to follow Petrol in raising energy prices soon.

STA, 8 October 2021 - The Chamber of Commerce and Industry (GZS) has called on the government to take urgent action in the face of the sharp rise in energy prices, proposing a series of measures it says need to be taken immediately.

"We are in the midst of the biggest energy crisis to date, it's about survival. Immediate systemic solutions are needed," said Tibor Šimonka, the president of GZS.

Energy prices have recently seen a sharp rise, both in Slovenia and across the EU. According to GZS, the consequences will be felt by everyone, households and companies alike, but most of all by the energy-intensive industries.

The chamber has drawn up proposals for short and long term measures together with the Energy Industry Chamber (EZS).

Among the short-term measures, they propose the government reimburse the indirect costs of emissions, reduce contributions, and temporarily suspend the profits targets of state-owned companies.

Among the long-term solutions is the proposal to carry out the planned and ongoing projects related to energy efficiency and renewable energy as quickly as possible.

"Decisions should be taken immediately to provide appropriate energy infrastructure, which would support Slovenia's self-sufficiency in energy supply at competitive prices," the chambers said.

During Slovenia's EU presidency, the government should insist on the adoption of emergency measures at EU level as soon as possible, the appeal to the government reads.

Representatives of the industry have been warning for some time about the high rise in energy prices, as the price of electricity has doubled this year, while the price of natural gas has almost tripled.

The price hikes have been causing problems in energy-intensive industries in particular. The government has not proposed any measures to mitigate the price shock yet.

The Economy Ministry told the newspaper Delo that Slovenia will follow the positions of the European Commission, while Finance Minister Andrej Šircelj told the business daily Finance that VAT and excise duties would not be reduced.

STA, 23 September 2021 - Concerned about rising energy prices, Slovenian industry has called on the government to take action. "The state will have to get involved," the Chamber of Commerce and Industry (GZS) said on Thursday.

Electricity prices have nearly doubled this year whereas gas prices have tripled, which has severely affected energy-intensive industries such as food and chemicals, the GZS said.

"The fact is that the wave of high prices will sooner or later spill over into household energy prices - before the energy transition even starts."

High energy prices may even lead to production stoppages in some of the most energy-intensive industries and certain companies are already sounding the alarm, said the GZS.

Energy prices topped the agenda of a meeting of EU ministers in Slovenia yesterday. Energy Commissioner Kadri Simons indicated the European Commission was willing to clear certain short-term measures to curb price growth.

STA, 19 July 2021 - The Infrastructure Ministry has issued an energy permit for the construction of the second unit at the Krško nuclear power station, a step that allows permitting procedures to begin and comes a week after the national climate strategy enshrined nuclear as a long-term energy option. The project will be managed by the state-owned Gen Energija.

"The energy permit kick-starts the broadest possible public debate, not just at the expert level but also among the people," Infrastructure Minister Jernej Vrtovec told the press on Monday, adding that this did not mark the final decision on the investment, it is merely the first step.

Only after a broad social consensus is reached, procedures such as siting, the acquisition of a building permit, selection of contractor and construction itself will begin.

Project details such as estimated price, time frame or selection of technology have not been determined yet, nor has the precise location.

Vrtovec said the energy permit would serve as the basis for the verification of environmental, spatial, technical and economic parameters in the form of a national spatial plan, environmental impact assessment, cross-border impact assessment, building permit acquisition, selection of supplier and financing.

He said the plan was to build a 1.1 GW unit with an estimated production of 9,000 GW of electricity per year and a life span of sixty years.

The best available technology at the time of tendering will be used. According to Gen Energija director general Martin Novšak, for now the best and safest technology is a pressurised water reactor of the kind currently in use in Krško.

New generations of nuclear reactors are under development, including small modular reactors, but the technology has not hit the market yet.

Novšak said the second unit was "necessary and technologically feasible" and provided the answer to the energy trilemma - the balance of reliability of supply, environmental acceptability and economics. The company has enough experience to manage the project economically and transparently.

The investment would be financed with a combination of own sources, potentially with the help of co-investors and even with EU funds, according to him.

Novšak said the optimistic scenario was to arrive at a final decision in five years, whereupon it would take five years to complete construction. "This is a really ambitious goal," he said.

President Borut Pahor recently mentioned that a major decision such as this should be put to a referendum. Vrtovec said there was "no hurry" to do that, but if the people want a referendum "I see no serious problem why the people should not express their opinion."

Judging by good experience with the original power station, Vrtovec expects that the people will support the project.

As for the sentiment in neighbouring countries - Austria is a staunch opponent of nuclear and some stakeholders in Italy have expressed apprehension - Vrtovec said their positions were clear, but "every country secures its own energy mix".

Given that Slovenia plans to abandon coal by 2033, he does not imagine the country could secure energy independence only with alternative energy sources, without nuclear.

Slovenia's current nuclear installation, launched in 1983, has a permit to operate until 2023 but a 20-year extension has already been requested and is now the subject of various assessment procedures.

There is cross-partisan support for nuclear energy in the country and the plant has a flawless safety record.

STA, 13 May 2021 - Slovenia plans to diversify its energy sources after the Covid-19 pandemic has highlighted the need for greater resilience. Environment Minister Andrej Vizjak counts in particular on solar and hydro power, and waste incineration.

Then minister noted at an online green energy summit on Thursday that the transition to alternative sources of energy brought certain challenges which were being addressed in the resolution on Slovenia's climate strategy until 2050, which the government confirmed in April.

The primary objective is to invest in renewables, and to utilise the remaining hydroelectric power potential in the country, Vizjak said, adding that there were also many opportunities in solar energy for covering a part of household consumption.

The minister noted that the problem with the latter was that, like wind, it was not always available in a sufficient quantity. This is the weakness of alternative sources of energy that policy makers need to be aware of, he added.

The document thus assesses that strong and reliable sources of electricity are required, and in the long run the state wants to continue investing in nuclear energy and in synthetic gases, including hydrogen.

Also important in the transition to green energy, according to Vizjak, is efficient energy management both in households and industry. Production units in Slovenia urgently need low-carbon transformation, he said.

According to the minister, the key segments of the green transition strategy are transport and consumption by households. As for the former, the goal is to boost public transportation, e-mobility and transfer of cargo from road to rail.

Vizjak noted that an important part of the recovery and resilience plan was waste management, including incineration of sludge from wastewater treatment plants and mixed municipal waste.

This is meant to compensate for the existing production units that use fossil fuel for supplying heat for Ljubljana and Maribor. A transition is planned to mixed municipal waste, he said.

STA, 23 March 2021 - The British company Ascent Resources has announced it will initiate arbitration proceedings against Slovenia over the dispute over permits for the extraction of gas by means of hydraulic fracturing in Petišovci (NE), after the state had failed to set forward a damages proposal. The company has estimated damage to be in excess of EUR 100 million.

Claiming that Slovenia is breaching its obligations to the detriment of the company's investments in Slovenia, procedures to start an investor dispute at international arbitration were formally started by Ascent Resources last July.

This could not happen before a three-month period has passed in which the parties would have the opportunity to settle the dispute amicably.

The two sides entered negotiations last October, but the British company said this would not prejudice its rights to pursue its investment treaty claim under the UK-Slovenia bilateral investment treaty and the Energy Charter Treaty.

The deadline for a possible settlement in the direct negotiations had been set for 19 March this year.

The latest announcement from Ascent Resources comes after the State Attorney's Office told the STA last Saturday that Slovenia had rejected an amicable settlement with the company as the deadline for the decision expired on Friday.

The British company said on its website it "intends to initiate arbitration proceedings against the Republic of Slovenia" and "confirms that an amicable settlement is presently not achievable."

It added that as part of direct pre-arbitration settlement discussions, it had "submitted a damages calculation to the state totalling significantly in excess of EUR 100 million."

The Slovenian Environment Agency issued a decision in March that an environmental impact assessment is needed before a permit can be issued for extraction of gas in Petišovci by re-stimulating two currently producing wells as planned by Ascent Resources and its Slovenian partner Geoenergo. The decision was upheld by the Administrative Court in June this year.

Ascent Resources said in the same release that "it is ultimately expected that the pressure at PG-11A will decline to unsustainable levels without mechanical stimulation (which forms part of the damages claim against the state)."

However, it added that it was pleased PG-11A was currently producing and that it intended to continue production whilst it was possible to do so.

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STA, 18 March 2021 - The newspaper Delo reported unofficially on Thursday that Slovenia was not to accept a settlement with the British company Ascent Resources over the dispute over permits for the extraction of gas by means of hydraulic fracturing in the north-east of the country.

The two sides entered negotiations last October, but the British company said this would not prejudice its rights to pursue its investment treaty claim under the UK-Slovenia bilateral investment treaty and the Energy Charter Treaty.

Claiming that Slovenia is breaching its obligations to the detriment of the company's investments in Slovenia, Ascent Resources formally begun procedures to start an investor dispute at international arbitration.

According to Delo, the deadline for Slovenia to announce its decision runs out on Friday, and the State Attorney's Office told the newspaper that Slovenia would inform the other party about its viewpoint within the agreed time.

"Since the negotiations about a possible solution of the dispute with a mutual agreement are still confidential, we are not able to provide more information," it added.

The negotiations are being held as a damages lawsuit by Ascent Resources is looming, with the company, according to Delo, expected to demand EUR 120 million in compensation.

The company alleges that through Slovenia's violation of its obligations under the two treaties, it has sustained considerable harm, as it has invested more than EUR 50 million in the development of the Petišovci oil and gas field.

The Slovenian Environment Agency issued a decision in March that an environmental impact assessment is needed before a permit can be issued for extraction of gas in Petišovci by re-stimulating two currently producing wells as planned by Ascent Resources and its Slovenian partner Geoenergo. The decision was upheld by the Administrative Court in June this year.

All our stories on Ascent Resources and Slovenia