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24 JUNE 2020

THE PRODUCERS INCLUDED IN THE URSO LIST HAVE HOPE OF RESCUE

 

Author of the article

Juraj Ondrejka

Partner

In March, we informed you about the list of the producers, who would lose the right to support in the form of surcharge. The reason for this were the arrears of the producers to the Social Insurance Agency. The Slovak association of the photovoltaic industry and Renewable Energy Sources (SAPI), started intensively dealing with the situation and asked us for legal help. In our legal analysis we found out that the current sanction in the form of loss of the right to support in the form of surcharge due to the levies and tax arrears shows signs of unconstitutionality, mainly due to its disproportionate strictness. Thus, together with SAPI, we prepared a draft of legislative solution of this disproportionate sanction, which would remove its liquidation nature and its impact on the producers.

We are glad that the members of the Parliament submitted on 19. June 2020 to the National Council of Slovak Republic the draft of the amendment of the Act on Support for Renewable Energy Sources (the Amendment), which aims to solve this undesirable situation in a similar way. The submitted amendment, except for a few deviations, comes from our draft.

The proposed Amendment corrects the disputed sanction so that in case of levies and tax arrears, the producer does not lose the right to support entirely, but only during the time period while they are in arrears. At the same time, the Amendment also remembers the producers, which were directly affected by the sanction in its current wording. Assuming that  until the Amendment becomes valid (the proposed date is 1. October 2020) the producers comply with all of their levies and tax obligations, they still have the right to support in the form of surcharge, according to the original conditions of support.

We recommend that all the producers, who receive the support in the form of surcharge, carefully investigate their current compliance with the levies and tax obligations and ensure that to the date of validity of the Amendment they are not in arrears for these payments. We closely monitor the situation regarding the loss of the right to support and the relating legislative process and will inform you about the result on our website.

 


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