New State Aid Scheme for Energy-Intensive Companies: An Overview of the ZSKREP
Authors I Miha Hočevar and Zala Flis
Background and Purpose of the Act
On 3 February 2026, the National Assembly adopted the Act on Promoting the Competitiveness and Decarbonisation of Energy-Intensive Companies (Zakon o spodbujanju konkurenčnosti in razogljičenja elektrointenzivnih podjetij; ZSKREP). The Act represents a legislative response to the increasingly challenging economic environment, in which Slovenian industry is confronted with persistently high energy prices. In this context, the introduction of additional support measures for so-called energy-intensive companies has become necessary.
Such support is also of particular importance for the effective implementation of the European green transition, the preservation of industrial sovereignty, and the maintenance of social cohesion. As the Slovenian legal framework has so far lacked a dedicated national instrument of this kind, the Government proposed the adoption of a new act of a temporary nature.
The measure is designed as a targeted and temporary form of state aid, intended for a limited group of undertakings which, due to the electricity intensity of their production, are particularly exposed to international competition and volatility in electricity prices. It is based on Commission Communication C/2025/3602 – the Clean Industrial Deal State Aid Framework (CISAF). This is a special, time-limited European Commission framework, intended to enable Member States to provide rapid and targeted support to energy-intensive industry, while conditioning aid on investments in decarbonisation and preventing distortions of competition within the internal market.
The objectives of the Act are primarily the preservation of the international competitiveness of energy-intensive companies in eligible sectors, the prevention of carbon leakage and relocation of production, the avoidance of job losses, the acceleration of industrial decarbonisation, the ensuring of effective and purpose-specific use of allocated resources, and compliance with EU state aid rules.
Definition of an Energy-Intensive Company
An energy-intensive company is defined as an undertaking whose average electricity intensity over the last three completed years exceeds 5%. Electricity intensity means the share of the undertaking’s average electricity consumption costs, including network charges, taxes and levies, in relation to its average gross value added in the same period.
Beneficiaries
Eligible beneficiaries are energy-intensive companies operating in a sector covered by Annex 1 of the Guidelines on State aid for climate, environmental protection and energy 2022, or a sector recognised as eligible by the European Commission on the basis of the relevant criteria under CISAF.
In addition, beneficiaries must also meet certain additional conditions, including requirements relating to minimum annual electricity consumption and the existence of an appropriate energy management system.
Allocation and Amount of Support
The support may amount to up to 50% of annual electricity consumption for the respective calendar year. The advance payment will be calculated on the basis of the forecast annual electricity consumption.
The support must not exceed 50% of the reference market price for baseload electricity for the respective year, and the average cost per unit of supported electricity must not be lower than EUR 50 per MWh. The calculation will also take into account all other forms of aid that the beneficiary may receive in a given year for the purpose of reducing electricity prices.
Support will be granted for electricity consumed in the territory of the Republic of Slovenia in the years 2026, 2027 and 2028. The resale or any direct or indirect transfer of such electricity to third parties will be prohibited.
Duration of the Measure and Source of Funding
According to the Government’s explanations, the measure is in practice intended for a limited number of undertakings from the most energy-intensive industries, with an indicative annual funding volume estimated at approximately EUR 30 million.
The resources will not be provided from the state budget, but rather from the resources of commercial companies that are directly or indirectly wholly state-owned and possess significant electricity generation capacities, namely those owning power plants with a total installed capacity exceeding 400 MW.
Procedure for Granting Support
Applications for support will be submitted to the market operator, i.e, the company BORZEN, d.o.o., which will initiate the procedure through a public call. The call must be published within ten days following the publication of the Government’s decision on the available annual amount of resources and the maximum possible support. The Government must publish such decision no later than 31 January of each year.
In 2026, the timeline is additionally contingent upon the approval of the Act by the National Council and the receipt of a positive decision from the European Commission on the compatibility of the aid scheme with the EU internal market. The Government shall then adopt a decision no later than 30 days after obtaining that decision.
The procedure will generally be conducted electronically. Support will be granted in the form of advance payments, disbursed in two equal instalments, by 30 June and 30 November of each year.
Recipients’ Decarbonisation Obligations
A key feature of the Act is the decarbonisation requirement imposed on beneficiaries of the support. Recipients must allocate at least 50% of the resources received to investments aimed at industrial decarbonisation. Article 9(1) of the Act provides an illustrative list of eligible measures, including renewable energy generation facilities, waste heat recovery systems, battery electricity storage, and other technological solutions for energy storage.
Support for the same investments may not be combined with aid granted under other state aid schemes. Furthermore, only new investments will be recognised as eligible. Investments involving used, refurbished, pilot, or prototype equipment will not qualify. Eligible investments must commence no later than 48 months following the granting of support, unless duly justified technical reasons necessitate a longer implementation period.
Reporting Obligation and Monitoring
Recipients of support are required to promptly notify the market operator of any relevant changes and to submit annual reports on electricity consumption and the implementation of the required investments. The market operator will carry out annual reconciliations and monitor the purpose-specific use of the resources. In the event of non-compliance, the recipient will be obliged to repay any support unduly received. Following the completion of the investment, the recipient must also submit a final report on the implemented investment to the market operator.
Validity Period
The measure is expected to be implemented until 31 December 2028, while the Act will remain in force until 30 June 2029. For reporting purposes, its provisions will continue to apply until 31 December 2033. Obligations relating to the repayment of unduly received support will remain applicable until 31 December 2037.
Open Issues
ZSKREP constitutes an important systemic measure for energy-intensive industries, while at the same time introducing strict conditions concerning the use of resources, decarbonisation commitments, and reporting obligations. Potentially eligible companies are therefore advised to assess their compliance with the statutory requirements in a timely manner and to carefully prepare for the associated investment and reporting duties.
During the legislative procedure, a number of practical questions arose regarding the interpretation of certain exclusion criteria, in particular the concept of “a businesses in difficulty”, limitations relating to certain financial relationships with owners and affiliated companies, and conditions concerning overdue and unpaid obligations arising from electricity supply, network charges and related levies, including in cases where such obligations are subject to court disputes.
This indicates that, despite certain amendments introduced during the legislative process, the practical application of the Act may give rise to further interpretative challenges when assessing the eligibility of individual undertakings for support.
