ANNUAL REPORT - HSE

Annual inflation in %
price movements were characterised chiefly by lower
prices of liquid fuels resulting from a downward trend
in oil prices on the global markets. In addition to the
lower prices of raw materials, the decrease in inflation
was also influenced by subsided economic activity and
expectations. The same reasons lead to a continued
slowdown in inflation in the entire euro area, where it
equalled 1.6% in December.
Negative net balance of the
national budget
At the end of 2008, the Slovene national budget recorded
a negative net position compared to the EU
budget in the amount of € 64.7 million. As a result of
new statistical aggregate estimates, total payments to
the EU budget in 2008 exceeded the funds allocated
for this purpose in the scope of the 2008 budget by
almost 10%, whereas less than half the funds were
drawn (44.4%).
Inflation movement in Slovenia
and the euro area in the
2000–2008 period 2
12
10
8
6
4
2
0
Jan 00
Jan 01
Slovenia
Jan 02
Euro area
Jan 03
The movements on the international financial markets
had a strong impact also on domestic exchange movements,
as the SBI20 index dropped by nearly 70%. The
index thus reached the lowest level since 2003. According
to the exchange rate as at 31 December 2008,
1 euro equalled 1.2591 US dollars.
Another significant event occurring in the energy sector
in 2008 was without a doubt the gas crisis, origi-
2
Source: SORS, EUROSTAT
Jan 04
Jan 05
Jan 06
Jan 07
Jan 08
Jan 09
nating from the dispute between Russia and Ukraine.
The crisis demonstrated the importance of domestic
energy products for energy supply.
In the past year, electricity production grew considerably
(+9.7%), whereas consumption decreased
(–5.4%). Net electricity export rose, accounting for
10.6% of total electricity consumption, which was the
highest figure since 2001.
2.6.2 Market environment
of the electricity industry
In the past year, the market environment of the electricity
industry was hugely characterised by extensive
electricity price changes. The major reasons for the
situation at hand should be sought in the global economic
conditions and the international financial crisis,
which towards the end of the year evolved into a general
economic crisis. The altered economic conditions were
greatly reflected in the prices of primary energy products
such as oil, coal and natural gas, and consequently
also in the prices of electricity. Until mid 2008 we recorded
high growth in the prices of energy products and
thus in the prices of electricity, however, in the second
half of the year the situation was substantially different.
Prices started plummeting from the record levels, and
still experienced a downward trend at the end of 2008.
According to the European directive on the crossborder
transmission capacity allocation, the Slovene
transmission network operator in 2008 continued allocating
its cross-border transmission capacities at
the Slovene borders on a market basis.
One of the major factors greatly influencing the electricity
market is the emission coupon market. In 2008
we entered a new five-year Kyoto period, lasting until
2012, during which an even greater focus on the reduction
of greenhouse gas emissions is projected. The
number of emission coupons allocated for this period
points to the fact that the protocol signatories are
striving to prevent the pre-Kyoto situation from recurring.
Namely, in the last year of the 2005¬–2007 period
it became clear that there had been too many coupons
distributed. This was reflected in their price. In 2008
the coupon price mimicked energy product prices – oil
in particular, which means that prices slumped in the
second half of 2008. Nevertheless, emission coupons
remain at price levels which still greatly influence how
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