Opposition Criticises Bill on Targeted Energy Assistance

Opposition Criticises Bill on Targeted Energy Assistance

The bill on targeted energy assistance only creates a framework for what it should look like, but no one knows what it will specifically contain, said opposition MPs Ivan Štefunko (PS), Karol Galek and Marian Viskupič (both SaS) on Thursday during a debate on a fast-tracked legislative procedure for the bill.

At present, it is also unclear whether this assistance will take the form of energy vouchers or some kind of relief from energy bills.

Galek said that energy vouchers worth €300 per household would cost the state €720 million or, with €500 vouchers, €1.4 billion. In comparison with across-the-board energy aid totaling €477 million, the savings achieved with the bill on targeted assistance would come in at €23.8 million. However, the bill also contains technical assistance, which amounts to €18 million.

"In the end, thanks to targeted aid for 95 percent [of households], we might end up paying even more than with across-the-board aid," said Galek.

Štefunko called on Economy Minister Denisa Sakova (Hlas-SD) to present specific figures and mechanisms for targeted aid. At the same time, the government should address the issue of households that burn wood for heating.

According to Viskupič, there are households in Slovakia facing energy poverty, but they don't make up all the 95 percent, as that includes those heating their swimming pools, thus consuming more power. The scheme won't be fair to all households, therefore.

"We've got this fast-tracked legislative procedure that didn't need to exist and shouldn't have done so. The bill, in order to get through the entire legislative process, including comments from experts, the public and suppliers, should have been in the works no later than in January. According to available information, suppliers don't even know what the future holds for them," said Viskupič.

Economy Minister Denisa Sakova (Hlas-SD) assured MPs that sensitive data on households collected by the Economy Ministry for the purposes of calculating targeted energy assistance will not be misused.  The information will be deleted automatically after the calculations are made, she said on Thursday during a parliamentary debate on the bill.  

The information system will be stored in the Interior Ministry's data centre with the same level of protection as that used for the Schengen Information System or document agendas.

"On the basis of a regulation, the government will define the income threshold and the scope of targeted aid, which means that it will be able to respond flexibly to the movement of energy prices on the market, as well as the needs of the people and their households," said Sakova.  She added that energy assistance will be revisited automatically at least once a year using a formula defining the eligibility of aid beneficiaries.

Those who will not be granted energy assistance will be able to lodge an appeal, said Sakova, adding that targeted assistance will be financed from European funds.

"This was approved by the European Commission when we requested it, with the only reason being its ideological decision concerning REPowerEU, i.e. halting the supplies of energy carriers including gas from Russia. After Ukraine began purchasing gas within the central European region as of January of this year, central Europe is seeing a 10-percent hike in prices when compared to Western Europe. As this situation is a consequence of the REPowerEU plan, the outcome of the talks with the European Commission was that we can use European funds for energy subsidies even next year," explained Sakova.

Source: TASR
 

Ben Pascoe, Photo: Topky/Ramon Leško

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