Approved amendment to Act No. 251/2012 Coll. on Energy

The current energy crisis and the related rapid rise in energy prices and inflation have negatively affected all EU Member States. As a consequence of this situation, the EU has adopted a regulation dealing with high energy prices, which includes the issue of the so-called market revenue cap and the distribution of excess and congestion revenues among final electricity consumers. The amendment law introduces an excess income levy for certain entities generating electricity but also grants to cover the difference in the price of heat.

The payer of the levy on excessive income is a domestic and foreign individual and legal entity located in the territory of the Slovak Republic, which:

• produces electricity in an electricity generation facility on the basis of a permit,
• purchases and sells electricity on the basis of an electricity supply permit,
• is directly or indirectly related to another levy payer,
• supplies electricity to the wholesale electricity market.

The subject of the levy is the excess income from the sale of electricity produced in the Slovak Republic and delivered to the electricity system. The amount of the levy is determined at 90 % of the excess income. 

The periods of the levy on excess income are the calendar months in the period from 1^stDecember 2022 to 31^st December 2024, while the levy payer is obliged to electronically submit the notice of the levy and pay the levy by the 25^th calendar day of the month following the end of the period of the levy. The Financial Directorate of the Slovak Republic shall publish a template of the excess income levy notice form on its website.

 The approved version of the Energy Act also amends the Income Tax Act, which determines that the levy on excess income is a tax expense. At the same time, the provisions of the Tax Code shall apply accordingly to the excess income levy.