Slovenské Elektrárne said in a statement that the law, if passed, will force losses on the company because the proposed tax amounts would exceed expected profits over 2022 and 2023.
Slovenské Elektrárne expects to see profits of €92m in 2022 and €320m in 2023, while the proposed tax is estimated at €207m for 2022 and €608m for 2023.
Branislav Strýček, the company’s chief executive, said the new tax, coupled with €3.7bn of debts incurred in the past, in part for the construction of Mochovce-3 and -4, will deter shareholders and investors from continuing to finance the projects.
There are two Russia-designed VVER units, 3 and 4, under construction at the Mochovce site. Unit 3 achieved first criticality in August 2021.
“At a time when the price of electricity reached €26 for MWh* and did not even cover our production costs, no one asked Slovenské Elektrárne how we finance the operation of our power plants, and especially the completion of two new units at Mochovce,” Mr Strýček said.
If the law is passed, the state, which is a minority shareholder with 34% in Slovenské Elektrárne, will suffer “enormous damage”, said the statement. Italy’s Enel Group and Czech EPH own equal parts of the remaining 66% stake.
According to local media, the Slovak ministry of the economy said the draft law sees as “excessive profits” the difference between market prices and the cost of power generation at nuclear plants. Taxation is proposed to be calculated on a monthly basis.
In a separate statement last week, the Slovak Association of Energy Employers warned against the draft law and said it would destabilise the business environment in the energy sector.
“Endangering the financial stability of a nuclear power plant operator is an ill-considered hazard which can have unpredictable consequence”, the statement said.
Slovenské Elektrárne operates four nuclear units at two sites – Bohunice-3 and -4, and Mochovce-1 and -2. In addition, the company has solar, hydro and coal-fired plants in its portfolio.
*First half of 2020, according to European commission data.
