Environment and Economy

The environmental economy represents development that allows to satisfy needs of the present generations without endangering the possibilities of future generations to secure their own needs. It is a process in which the use of resources, direction of investments, and orientation of technological development and institutional changes are all in mutual harmony and thus need both the present and future potential to fulfil the human needs and claims.

The priorities the environmental economy should address include: reviving of growth (issue of poverty); change in the growth quality; satisfaction of basic human needs, securing sustainable population levels; protection and expansion of the source base; re-orientation of technology and risk management; interconnection of the environment and the economy in decision-making processes.

Composition of the electricity end price

Besides the price of electric power alone, the bills for this commodity also reflect other services related with its generation and distribution.

The end consumer of electric power takes electric power for the price that, in the final calculation (invoiced amount), shows the following structure:

  • Price of electric power – represents the price of the supply of electric power, includes costs for the procurement of electricity, including the costs for deviation, as well as influenceable costs of the supply and average profit for the electricity supplier. Electric power prices of in Slovakia depend on the prices on the stock market in Leipzig and in Prague; you will find the development of those prices at http://www.eex.com/de#/de and  http://www.pxe.cz/;
  • Price of the distributor’s services – includes the price for the transmission and distribution of electric power; this price is approved by the Network Industries Regulation Authority (ÚRSO);
  • Distribution loss tariff – it includes the costs related with the covering of losses that occur in the distribution of electricity to the end customer; this price is approved by the ÚRSO;
  • System services tariff – represents the costs connected with the regulation of the power grid, which need to be spent to maintain its stability and reliability; this price is approved by the ÚRSO;
  • System operation tariff – represents the costs spent on the support of: mining of domestic coal; generation of electricity from that coal; generation of electricity from RES and from highly efficient combined electricity and head generation as well as the support of the organizer of the short-term electricity market. The highest share of the electricity generation from RES has photovoltaics; this tariff is also approved by the ÚRSO;
  • Contribution to the National Nuclear Fund – represents a fee that is collected by the operator of the transmission grid and the operator of the distribution grid. This fee is intended for the payment of the debt that was made in the creation of sources intended to cover the costs of the closing part of the nuclear energy business, created during the previous operation of nuclear facilities for the purposes of electricity generation, decommissioning of nuclear facilities, and the management of spent nuclear fuel and radioactive waste;
  • Contribution to state budget – consumption tax (households are freed from the payment of consumption tax on electricity) and VAT.