BRATISLAVA, April 6, (WEBNOVINY) — Parliamentary deputies for the strongest opposition party SMER-SD failed to persuade the coalition’s MPs that it is necessary to prevent the privatization of state-run heating companies on Wednesday. Only 69 of 147 deputies present raised their hands for an amendment to the law on conditions of transfer of the state assets to other entities, which was not enough to move the draft to the second reading.
SMER-SD argued that the price of heat for inhabitants will grow after the privatization, which is the usual scenario so far in the privatization of strategic energy companies. According to the party, which tailored and submitted the amendment the contribution from the heating plants’ profits to state coffers is not negligible. In contrast, the coalition says that soon it will be necessary to invest great amounts in the heating plants. According to it, heat prices are regulated and given the quality work of the Office for Regulation of Network Industries (URSO) there is no reason for concern about any price hikes.
SMER-SD leader Robert Fico reminded Prime Minister Iveta Radicova (SDKU-DS) of her pre-election promise to not privatize while it considers the current steps of the incumbent coalition an election fraud against the citizens. Several SMER-SD deputies hinted during the discussion on the amendment that privatization proceeds is what holds the coalition together.
Members of the Slovak Cabinet cleared the sale of 100-percent stakes in six largest heating plants two weeks ago. The process is to be kickstarted in the second half of the year in selection of the consultant and due diligence in heating plants. Authors of the analyses forecast that investors could submit final bids in March 2012.
Several companies confirmed they are interested in buying the heating utilities, for instance, the Austrian company Energie Steiermark AG, which controls a 100-percent stake in Stefe SK; Cofely from the GDF SUEZ group and the French company Dalkia. Slavia Capital, Penta as well as a German firm will potentially also be involved.
Early parliamentary elections in 2006 thwarted the privatization of six largest heating plants, planned by the second government of Mikulas Dzurinda. The Cabinet formed by the election winner, SMER-SD and its two partners, halted the sale of energy companies. Dzurinda’s team intended to sell 51-percent stakes directly to a strategic investor. As the privatization agency reported, sixty-four entities showed interest in the utilities five years ago, and thirty candidates qualified for the purchase.
SITA