Ljubljana - Electricity prices for households and small and medium-sized companies will be capped from 1 September to August 2023 under plans announced by the government on Thursday. Households will pay between 15% and 60% less for electricity than now, depending on provider, Infrastructure Minister Bojan Kumer told the press after the cabinet session.

Prices will be kept low through a combination of lower duties and measures that will reduce the profits of power generation companies, according to Kumer.

The excise fee on electricity will remain at 50% of the headline level, whereas the contribution for renewable sources will be cut in half come September.

Kumer did not disclose exactly how prices will be kept low beyond saying that Slovenia was fortunate that electricity generation and distribution were in majority state ownership.

The government has been engaged in talks with stakeholders across the entire chain and they will "optimise costs" while eschewing some of the profits, he said.

Slovenian power generation companies have been able to sell electricity at market price driven by huge demand in the EU, whereas their underlying costs have changed little.