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Energy Sector: The Slovak Regulator Isn’t Idle This Summer

Issue 12.7
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In July 2025, the Regulatory Office for Network Industries (RONI) published proposed changes to the methodology for imbalance settlement. The aim of these changes was to limit payments for so-called “counter-imbalances” to entities that contribute to balancing the electricity system.

The proposed change was not publicly consulted in accordance with the Energy Act or European rules for transparent market governance. Requirements for public consultation during changes to the operational rules of OKTE, a.s. (the short-term electricity market organizer) were also not met. These changes were expected to have significant negative consequences on electricity prices. For this reason, several associations, chambers, and industrial unions called on RONI to refrain from these steps and reconsider the planned regulation.

Specifically, the planned change was criticized for the fact that the cancellation of compensation for counter-imbalances creates an unequal position among market participants. On one hand, entities that invested in flexible solutions and helped stabilize the grid would be disadvantaged without adequate compensation. On the other hand, excluding payments for counter-imbalances through changes to OKTE’s operational rules – where OKTE unilaterally changes the settlement methodology – constitutes an abuse of OKTE’s dominant position and restricts economic competition.

Additionally, the proposed change appeared to conflict with Commission Regulation (EU) 2017/2195 on establishing a guideline for electricity balancing. Article 55 of this regulation explicitly states that the imbalance price may be positive, negative, or zero, and that settlement entities are entitled to receive imbalance payments if their activities contribute to balancing the electricity system.

As a result of pressure from stakeholders, RONI is now opting for a softer adjustment – an ex officio change to OKTE’s operational rules. In it, OTKE modifies the electricity price multipliers from a value of 1.5 to 1.1 – i.e., the compensation is reduced by a factor of 0.4. According to the regulator, this measure is intended to promote fair and responsible market behavior and reduce incentives for speculative electricity trading. Ultimately, electricity prices for households and businesses should become more stable in the future. Industry estimates an increase in electricity prices of 4 to 6 EUR per megawatt-hour.

As a result of this planned change, OKTE launched a public consultation on August 4, 2025, regarding the proposed amendments to its operational rules. The consultation was set to run until August 18, 2025, and the change was set to take effect on September 1, 2025.

In addition, RONI was planning to initiate a public comment process in August 2025 on pricing decrees in both the electricity and gas sectors.

The main proposed changes in the electricity sector concern the method of calculating the maximum price for electricity supply to vulnerable household consumers, as well as the method for determining the price of electricity produced from renewable energy sources and the payment method for access to the distribution network.

In the gas sector, changes will also be made to the calculation of the maximum price for gas supply to vulnerable consumers. Additionally, the amendments will address the basis for price proposals, details on price determination, and the conditions for applying the price for trader services in supplying gas to end consumers for heat production and heat supply. As of the time of writing, details are not yet known.

Another hot topic this summer – and beyond – concerns investments that operators of renewable energy sources, especially photovoltaic systems, must make into their facilities as a result of so-called “repowering and extended support.” These investments must be made no later than five years from the year of entry into the extended support scheme, which, according to RONI, in most cases, means by December 31, 2026. RONI has already announced inspections to verify whether the planned financial resources have been invested. If not, the electricity producer may be required to return part of the support received.

However, it is important to note that electricity producers have long pointed out that many issues related to the investments are not clearly regulated by legislation and have not been adequately addressed by the regulator. For example, the deadline for the required investment is unclear. Producers argue that, according to the relevant provision, the deadline is December 31, 2027, whereas RONI states otherwise on its website. Other uncertainties include the condition of economic justification for the incurred costs, the technology itself (e.g., the inability to use a different type of panel with a different installed capacity), or the requirement to prove the legitimacy of costs through an expert opinion.

By Annamaria Tothova, Partner, Eversheds Sutherland

This article was originally published in Issue 12.7 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

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Our team consists of a total of more than 40 lawyers in the Czech Republic and Slovakia, most of whom have previously worked at major international and local law firms and have extensive experience in particular in the areas of corporate law, including mergers and acquisitions, capital markets, real estate, employment law, competition law, litigation and arbitration, energy, infrastructure, as well as environmental and ESG law.

Our advisory services are offered in Slovak, German, Czech and English language. Members of our team include attorneys registered with the Austrian Bar Association. On this basis, and because we are part of Eversheds Sutherland, we are also able to offer extensive legal support on various foreign legal issues.

We listen to our clients, we understand their business and we also understand what they need. So we can always find the best solution for the particular situation. We work quickly, efficiently and take responsibility for our work.

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