|
UTILITIES
Overall consumption of energy in the EU-25 remained unchanged in 2006 compared to 2005, falling in ten Member States and growing in fourteen. The largest decreases were seen in Lithuania (-6.3%), Finland (-4.9%) and Cyprus (-4.5%), while the largest increases were recorded in Latvia (+7.5%), Hungary (+5.9%), Portugal and Slovenia (both +3.1%).
Slovenian energy market
Final energy consumption in households in Slovenia decreased for the majority of energy carriers in 2006. In comparison with the previous year the final consumption of natural gas decreased for 5.2%, heating oil for 5.8% and district heat for 8.5%. Decrease is the result the mild winter and therefore shorter heating season. Only exception is electricity. The final consumption of electricity increased for around 3% in all sectors.
The highest share in the final consumption in 2006 was that of petroleum products (47.8%), followed by electricity (21.9%) and natural gas (16.4%). The share of renewable energy sources in final energy consumption in 2006 was 8.3%.
Energy intensity in Slovenia is decreasing
In 2006 the energy intensity on supply side and on final consumption side decreased. Tendency of decreasing in previous years was between 1% and 2% annually. In 2006 the energy intensity decreased for 4.8% on supply side and for 4% on final consumption side.
Total primary energy supply; Slovenia, 2006

Source: Statistical Office of the Republic of Slovenia
Total final consumption; Slovenia, 2006

Source: Statistical Office of the Republic of Slovenia
Electricity
Electricity consumption in Slovenia, GWh

Source: Statistical Office of the Republic of Slovenia
Opening up the electricity market
With the opening of the market for electricity, electrical energy became a marketable commodity. Since 15 April 2001, Slovenian energy-related legislation allows customers that have a connected capacity of more than 41 kW at a single point of supply to freely choose their suppliers of electricity.
In accordance with the amended Energy Act of May 2004, from 1 July 2004 onwards, all customers, except households, were considered to be eligible customers. The legislation classified households as tariff customers until 1 July 2007. From the 1st of July 2007 electricity markets have been opened even to households, therefore they can freely choose their suppliers of electricity. Tariff customers are provided with electricity, in accordance with the tariff system, by distribution companies in the framework of the public service of the supply of electricity to tariff customers.
Electricity users are now able to negotiate the price of electricity with several distributors. Different rates of the electricity network fee are applied, depending on the voltage level, season (high-middle-low) and overall consumption of power.
Estimated cost for 1kWh = € 0.05
Energy sources and electricity production
In Slovenia all forms of primary raw materials, or energy sources, are used for the production of electricity. The predominant share of electricity production is carried out in conventional power stations (thermoelectric power stations, hydroelectric power stations, and the nuclear power station), while the production share at the distribution level is still very small.
The following eight companies operating in large facilities with a capacity of over 10 MW are active in the electricity-production market:
Drava Power Stations, Maribor, d.o.o. (DPSM),
Sava Power Stations, Ljubljana, d.o.o. (SPSL),
Soča Power Stations, Nova Gorica, d.o.o. (SPSNG),
Nuclear Power Station, Krško, d.o.o. (NPSK),
Thermoelectric Power Station, Šoštanj, d.o.o. (TPSŠ),
Thermoelectric Power Station, Trbovlje, d.o.o. (TPST),
Combined Heat-and-Power Station, Ljubljana, d.o.o. (CHPSL),
Thermoelectric Power Station, Brestanica, d.o.o. (TPSB).
Three companies, the DPSM, the SPSL and the SPSNG, generate electricity in hydroelectric power stations, the NPSK in a nuclear power station, the TPSŠ and the TPST in thermoelectric power stations running on coal, the TPSB produces electricity from liquid and gaseous fuels, and the CHPSL cogenerates heat and electricity in a cogeneration process using coal.
In addition to the so-called system production in large power stations, the Slovenian electricity system also includes some dispersed production operating on the distribution network. Among them, two types of production are particularly important to Slovenia: production in small hydroelectric power stations, and production in industrial facilities for the co-generation of heat and electricity.
Electricity production – in GWh
 Source: Energy Agency of the Republic of Slovenia
The electricity price for customers
The final price for the electricity supplied to customers consists of:
the price for the electricity;
the price for the use of the networks, including the network charge and the supplements to the network charge;
the excise duties on the electricity;
the value-added tax.
The use-of-network price consists of the network charge determined by the Energy Agency, and the supplements to the network charge determined by the government. The supplements to the network charge cover the costs for the Energy Agency´s operation, the compulsory purchase of electricity, the suppliers´ costs resulting from the continuity of the energy supply, and the costs of recording the concluded contracts on electricity supply.
Electricity prices for reference customers the 2nd half of 2007
(in EUR/kWh; all taxes included)

Source: Energy Agency of the Republic of Slovenia
Share of taxes in industrial electricity prices as of 1 July 2006
Standard consumer Ie, annual consumption of 2 000 MWh
 Source: Eurostat, 2008
FDI opportunities
With the opening of the market for electricity, electrical energy became a marketable commodity. Since 15 April 2001, Slovenian energy-related legislation allows customers that have a connected capacity of more than 41 kW at a single point of supply to freely choose their suppliers of electricity.
In accordance with conditions pertaining to the open electricity market, the government privatised 25 per cent + 1 share in public electricity distribution companies, public companies involved in distribution and supply to tariff consumers, and companies engaged in supplying authorised consumers.
Natural gas
The Slovenian gas network
Sources and supply of natural gas
Slovenia depends almost entirely on foreign sources of natural gas. The supply of natural gas in Slovenia is provided by regulated, i.e., non-market activities, as well as market-based activities. The supply of natural gas to eligible customers is a market-based activity, while the supply to tariff customers is a regulated activity. The transmission and distribution of natural gas, i.e., all the activities related to gas-pipeline networks are completely regulated activities.
Eligible customers of natural gas are those customers that can freely choose their suppliers. In accordance with the Act Amending the Energy Act, which came into force on 8 May 2004, eligible customers are, from 1 July 2004 onwards, all customers, except households, irrespective of whether they are connected to the transmission or a distribution network. Household customers remain tariff customers until 1 July 2007, at which time the Slovenian market will become open for them as well.
In spite of the opening of the gas market, in 2004 Geoplin, d.o.o., remained the sole supplier of natural gas, supplying eligible customers on the transmission network and the natural-gas distribution companies, almost exclusively from imported natural gas (99.5 percent). Since 1 January 2005 Geoplin plinovodi, d.o.o., Ljubljana, a subsidiary company of Geoplin, has been responsible for the operation of the gas transmission network, i.e., it carries out the mandatory state, non-exclusive public service of the system operator of the gas transmission network.
As a rule, the local distribution companies supply natural gas to eligible customers connected to distribution networks, and carry out the optional local public service of the supply to tariff customers. All eligible customers may freely choose their suppliers. This means that an eligible customer connected to the transmission or a distribution network is not tied to its previous supplier, as it may be supplied with natural gas by any supplier with an appropriate licence from the Energy Agency.
Natural-gas distribution companies are responsible for the local distribution networks, i.e., they carry out the tasks of the system operators of the gas distribution networks as an optional local public service.
The connections of the Slovenian pipeline system with the neighbouring countries of Italy, Austria and Croatia are one of the advantages of Slovenia’s geographical position.
The Slovenian network of gas transmission pipelines

Source: Geoplin
Distribution networks for natural gas
The distribution system operators provide the optional public service of operating individual distribution networks. There are distribution networks for natural gas in more than sixty Slovenian municipalities. About 102,600 households and about 9200 eligible customers are supplied with natural gas. In the following years we can expect an increase in the construction of new gas distribution networks.
The gas distribution system operators own, or operate, 2582 km of gas pipelines with a nominal pressure of less than 16 bar.
The activities of the gas distribution-system operation and the supply of natural gas to tariff customers are optional local public services, which have to be regulated with a concession act between the concessionaire and the local community acting as the awarding authority, or they have to be organised as a public company established by the local community. In 2005, in 47 local communities these activities were organised as a concession between a concessionaire and the local community, in 13 local communities these activities were provided by public companies, and in two local communities these services were carried out in a different way.
Prices of natural gas in Slovenia
The prices for natural gas paid by eligible customers are set by the market, while the prices paid by households are fixed in advance.
Eligible customers of natural gas are those customers that can freely choose their suppliers. In accordance with the Act Amending the Energy Act that came into force on 8 May 2004, eligible customers are, from 1 July 2004 onwards, all the customers of natural gas, with the exception of households. These customers, i.e., the customers that purchase natural gas for their own domestic use, which excludes any business or professional activities, remained tariff customers until 1 July 2007. For the purpose of receiving the supply of natural gas, an eligible customer has to agree on the natural-gas supply with a supplier and on the access to the natural-gas network with the system operator. The eligible customer’s access to the network can also be arranged by the supplier. For this reason the price for natural gas is separated from the price for the use of the gas networks.
With regard to eligible customers, the price for natural gas is set by the market and is the subject of negotiations or agreements between the natural-gas suppliers and eligible customers.
The prices for the use of the network
The price for the use of the network that the customer of natural gas pays for access to the network consists of the network charge and the supplements to the network charge. The Energy Agency regulates the network charge by determining, with appropriate methodologies, the modes of setting and calculating the network charge. The supplements to the network charge that are part of the price for the use of the network are determined by the Government of the Republic of Slovenia. These supplements cover the costs for the Energy Agency´s operation, the release of the long-term transmission capacities for natural gas, and the costs of suppliers resulting from the continuity of the energy supply.
The network charges
The network charge is part of the use-of-network price that a customer of natural gas pays for the access to the network. The Energy Agency regulates the network charge by determining, with appropriate methodologies, the modes of setting and calculating the network charge. The Energy Agency issues the methodologies regarding the network charge in the form of general acts, and with the consent of the Government of the Republic of Slovenia. Prior to adopting the methodologies, the Energy Agency carries out the procedure of a public forum by publishing the drafts of these general acts on its website, and inviting the interested public to contribute written comments. After obtaining the consent of the government, the Energy Agency publishes the methodologies in the Official Gazette of the Republic of Slovenia, separately for the transmission and distribution networks.
On the basis of issued methodologies the system operators of the transmission and distribution networks set the network charges, and submit them to the Energy Agency for its consent.
The wholesale price of natural gas in Slovenia is lower than the average price in Western Europe.
Natural gas prices by standard consumers for industry (EUR/GJ; exclusive of taxes), half-yearly
Standard consumer: annual consumption of 41 860 GJ = 1 107 000 Sm3 (GCV)

Note: Prices of natural gas include all taxes. In accordance with the legislation in force, a CO2 tax and excise duty is added to the prices for the supply of natural gas. Final price includes VAT (20%).
Source: Statistical office of the Republic of Slovenia
Opening up the natural gas market in Slovenia and FDI opportunities
The degree of liberalisation of the market for natural gas
In 2004 the market for natural gas in Slovenia opened up for all the customers connected to the gas transmission network, and for the non-household customers connected to the distribution network. After July 2007 market has being opened up as well for household customers. Both are eligible customers that can choose their suppliers.
The sources of natural gas
Slovenia has very limited resources of natural gas, and for this reason it is entirely dependent on foreign sources of natural gas. In 2006 most of the gas was supplied from Russia.
The sources of natural gas

Source: Energy Agency of the Republic of Slovenia
The following participants began to appear on the Slovenian natural gas market after the initial opening-up of the market to competition from the 1st of January 2003, when authorised consumers with annual consumption of at least 25 million cubic metres are being able to freely choose their supplier:
• existing gas companies;
• new local gas companies owned by the current Slovenian distribution companies who wish to expand their activities to the supply of natural gas to authorised consumers (Apegas-Petrol, Adriaplin, Slovenski plinovodi, Energetika Ljubljana, Plinarna Maribor, Domplan Kranj, Evroplin Trbovlje, Plinovod Sevnica)
• foreign gas companies or their representatives (Ruhrgas, Snam, OMW)
• newly established gas companies in mixed Slovenian and foreign ownership whose majority share is in the hands of foreign gas companies.
Sources:
- Energy Agency of the Republic of Slovenia
- Statistical Office of the Republic of Slovenia
Water and sewage services
Prices for water and sewage services for business entities in the largest municipalities, January 2008

Source: selected municipalities
The price of water is formed on the basis of metered use, or on the basis of estimated use in those cases where metering is not carried out. This price varies greatly from country to country; it also varies within countries depending on the location and type of user. Subsidies still play an important role in water pricing.
Although the water-pricing schemes in different countries are not directly comparable, a comparison between water taxes in Central and East European countries and the countries of the EU shows two possible directions in which price is being formatted:
• a substantial increase in taxes linked to water use in order to cover all costs and generate revenue for future investment
• the abolition of subsidies and cross-subsidies (one type of user pays more) and approximation to the "polluter/user pays" principle.
Public water supply
In spite of greater ecological awareness and recirculation and re-use of water, the volume of water supplied to the households and business entities in 2006 increased by 1% over 2005.
Increase in the volume of water supplied to the households and business entities in 2006 over 2005
The volume of water supplied to the households increased by 1.5%, whereas the volume of water supplied to the business entities decreased by 0.2%. At the same time the leakage (water loss) of water in the public water supply increased by 5.5%. In 2006, 82.0 billion m3 of water was used for various purposes in industry in Slovenia, which is 9.3% more than in 2005. Use of water in industry by purpose as follows; 9.1% for industry, 0.8% for cooling, 0.06% for sanitation and 0.04% for other purposes in industry.
Pumping of water increased
In 2006, 1.7% more water was pumped than in 2005. We noticed an increase of pumping from ground water (by 14.3%) and decrease of pumping from springs of ground water (by 16.4%). Pumping from running waters decreased by 6 times and amounted to only 16.1% of water pumped in 2005. From the other water sources slightly higher amounts of water were pumped in 2006 than in 2005.
The volume of water provided from in the Adriatic Sea river basin in 2006 increased by 0.3% and also the volume of provided water from the Danube basin decreased by 2.2%.
Increase in the number of connections to the water supply network in Slovenia
In 2006 the length of the entire water supply network was extended by 0.3% and thus the number of users and their connections to the water supply network increased (by 9,265).
Volume of water provided in public water supply by water sources by sub-basins, 2006
 - no occurrence of event
Source: Statistical Office of the Republic of Slovenia
Public sewage system
In 2006, 149 million m3 of waste water was discharged from the public sewage system, which is 3.9% more than in 2005.
Kinds of waste water discharged from the public sewage system
In 2006, 148,952 tausent m3 of waste water was discharged from the public sewage system in Slovenia, of which 0.3% from agriculture, forestry and fishing, 13.1% from industry (mining and quarrying 3.3%, manufacturing 89.2%, electricity supply 6.1%, construction 1.4%), 50.0% from households and 4.7% from other activities. 31.9% is other water such as run-off rain water, etc.
More water treated due to the solving of the technical problem at the treatment plant
Of which 70.0% of water was treated and 30.0% was not treated. Compared to 2005, in 2006 34.7% more waste water was treated as a result of the solving of the technical problem at the treatment plant.
Waste water by source, 2006
 Source: Statistical Office of the Republic of Slovenia
|