"The European Arbiter": Chairman of the Slovak Regulator (ÚRSO) on Independence from the Government, Price Control, and Opportunities for Ukrainian Traders

05.02.2026

A debate is ongoing in Ukraine regarding the reform of the NEURC (National Energy and Utilities Regulatory Commission). How to ensure the Regulator’s real independence, avoid political pressure, and simultaneously maintain market transparency? Energy Club turned to the experience of its closest neighbor — Slovakia.

Jozef Holjenčík. Source: https://www.urso.gov.sk/

In an exclusive interview for Energy Club, Jozef Holjenčík, Chairman of the Regulatory Office for Network Industries of Slovakia (ÚRSO), discussed the Slovak management model, procedures for Ukrainian companies entering the EU market, and joint infrastructure projects.

Moderator: Valerii Bezus, Vice President of Energy Club.

Architecture of Independence: How ÚRSO Works

Valerii Bezus: Mr. Holjenčík, welcome! Recently, the discussion in Ukraine has intensified regarding how to balance the Regulator’s independence with its efficiency. The Slovak experience is exemplary for us. How is your system built?

Jozef Holjenčík: Thank you for your interest. We know the Ukrainian system well thanks to our cooperation within the Twinning project, which we implemented in 2013–2017.

The Slovak Regulator (ÚRSO) is an independent state institution. According to the law, neither the Government nor any regulated entity can influence our decisions.

Institutionally, we consist of two parts:

1. The Chairman of the Office (and the Office itself) — this is the executive body that carries out direct regulation, issues licenses, and sets prices.
2. The Regulatory Council — this is a supervisory and appellate body. If a market participant disagrees with the Office’s decision, they appeal to the Council as a second instance.

V.B.: How are appointments made to avoid political influence?

J.H.: The Chairman of the Office is appointed by the Government of the Slovak Republic for a term of 6 years. One person can hold this position for no more than two terms. Upon my proposal, the Government also appoints two Vice-Chairmen.

As for the Regulatory Council, it consists of six members. They are appointed by the President of Slovakia based on a quota principle: three candidates are nominated by the Ministry of Economy, and three by the Parliament. To ensure stability, a rotation of two Council members takes place every two years.

V.B.: To whom is the Regulator accountable?

J.H.: The Regulator has no “boss.” We are not subordinate to either the President or the Prime Minister in our operational activities. Our decisions, signed by me as Chairman, are legally binding and do not require approval by other authorities.

The only form of accountability is the annual activity report, which we submit to the National Council (Parliament).

V.B.: What about funding? In Ukraine, the NEURC budget is formed through license fees.

J.H.: Slovakia has a different model. We are funded from the state budget, but we have a separate protected budget chapter. This means that the Parliament approves a separate funding package for us annually, just like for any ministry. Office employees have the status of civil servants, and their remuneration is regulated by the relevant law.

Ukrainian Business in Slovakia: Licenses and REMIT

V.B.: Many Ukrainian traders are currently entering the Slovak market. What are the requirements for them? What is the step-by-step algorithm?

J.H.: We are open to Ukrainian business. The market entry algorithm is as follows:

1. Registration: A Ukrainian company must establish either a subsidiary or an official organizational unit (branch) in Slovakia.
2. Obtaining Permission: It is necessary to apply to ÚRSO for a permit to trade electricity or gas.
3. Documents: You need to submit a criminal record certificate (for the company itself and its officials) and register in the Register of Public Sector Partners.

These are standard administrative procedures, the same as for Slovak companies.

V.B.: What about the REMIT regulation (wholesale market transparency)?

J.H.: Slovakia has fully implemented REMIT. If a Ukrainian company (through its Slovak unit) wants to trade, it must register in the CERP system via ACER (EU Agency for the Cooperation of Energy Regulators). As the Regulator, we facilitate this process. We also actively participate in investigating wholesale market violations if they arise.

Strategic Cooperation and Infrastructure

V.B.: What are the prospects for expanding transmission capacity (interconnectors) between our countries?

J.H.: The electrical connection on the Mukachevo – Veľké Kapušany line is strategic. This trade is already happening. Moreover, the Slovak Government has approved a project to expand this interconnector — the construction of a second 400 kV line. This will double the transmission capacity. This project is part of the ten-year transmission system development plan, and we expect its completion roughly by 2033. When the capacity reaches 2000 MW, nothing will prevent large-scale electricity transit in both directions.

Regarding gas, the situation is more complex. Our transit pipeline, which is one of the largest in Europe, is currently underutilized due to the loss of transit from the East. However, we ensure reverse flow to Ukraine through the Budince point, trying to cover your needs as much as possible. We hope that the transit potential of our system will be in demand again in the future.

Prices, Investments, and Plans for 2026

V.B.: Where should Ukrainian investors invest in Slovakia?

J.H.: The doors are open for investment in generation and grid development. Ukrainian companies can create joint ventures or act independently.

Regarding renewable energy (RES) — we support its development, but we approach some aspects of the “Green Deal” with caution. We believe that RES should be built where energy is consumed to avoid overloading the grids. I also see prospects for cooperation in a project to create gas storage facilities in eastern Slovakia — the experience of Ukrainian specialists would be very appropriate here.

V.B.: What is the Regulator’s main priority for this year?

J.H.: Our priority is affordable and stable prices for consumers. We see a problem in that a completely free market created imbalances during the crisis. In Slovakia, prices sometimes reached 120 euros per MWh, while in Spain or Scandinavia they were at the level of 30–60 euros. This hits the competitiveness of our industry. We are preparing for a new regulatory period (starting from 2028), and our goal is to level the playing field so that Slovak businesses have the same energy prices as competitors in Western Europe.

I should note that ÚRSO regulates network tariffs for everyone, but supply (commodity) prices are regulated only for vulnerable categories — households and small businesses.

V.B.: Mr. Holjenčík, thank you sincerely for the frank conversation and support for Ukraine!

J.H.: Thank you. Slovakia is ready to cooperate as a close partner. We also hope to continue Twinning projects with your Regulator to share experience on the path to a single European market. I wish you success and peace.

Material prepared by the Energy Club Press Service.