Slovakia wants to take legal action against electricity utility Slovenské Elektrárne and will claim for compensation of €350 million, said Prime Minister Robert Fico. Based on an allegedly invalid contract, Slovenské Elektrárne had been operating the Gabčíkovo Hydroelectric Power Plant for the past eight years.
On Tuesday, Robert Fico informed Parliament that the state has definitely became the owner of VEG, meaning that the power plant will be operated by the state-owned Water Management Construction company. The state assumed control over Gabčíkovo following a verdict of the Bratislava Regional Court, which decided that the rental contract on the water plant was invalid.
The hydroelectric power plant used to be run under a rental contract by electricity utility Slovenské elektrárne owned by Italian company Enel. Fico called the rental contract disadvantageous for the state a number of times in the past. According to him, the privatised electricity utility was able to keep 35 percent of revenues from the hydroelectric power plant operations without any reason. As he said: "A figure that with average yearly revenues of €100 million amounted to €35-40 million annually", the prime minister finds assuming control over Gabčíkovo to be of the utmost importance. According to Fico, the Government strives to gain as much power as possible when it comes to strategic companies. "All income from VEG - we're talking here about €100 million - will go to the Water Management Construction, which is a state company", said Fico.
Slovenské Elektrárne is two-thirds owned by Italian concern Enel and by the state of Slovakia (34 percent), with Enel having the decisive say. Enel is putting up shares on the market this week with Friday being the deadline for submissions.
