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Slovak federal government to extend electrical power cost cap for households

Slovakia's government on Wednesday approved extending a scheme capping family electrical energy costs into 2025 to restrict the effect of power cost rises of recent years.

The state implemented its scheme in 2023 and the Economy Ministry stated costs have not come down enough to permit the ending of the program.

Under approved plans, the electricity price, without distribution and other associated costs, will be topped at 61 euros per megawatt hour (MWh), the ministry said.

It said Slovak families will conserve 267 million euros due to the cap's extension.

Rising energy costs have actually been seen as an inflation chauffeur in 2025 in the central European nation which is a member of the euro zone.

In September, the Council for Spending Plan Responsibility (RRZ). forecast inflation next year to increase to 5.0%, partly on increasing. managed energy costs together with tax hikes the federal government is. putting in location as part of its deficit-cutting plans.

Prime Minister Robert Fico's leftist-nationalist federal government. is tackling one of the most significant budget deficits in the euro zone,. estimated at around 6% of gross domestic product in 2024.

(source: Reuters)