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Slovenia to merge electricity distribution and transmission operators

The Slovenian Government gave green light to the merger of the distribution system operator SODO with the transmission system operator ELES. As the sole partner of ELES, the government will waive several shareholder rights in the case of the merger, such as reporting requirements, inspection control and merger audits.

ELES has been the owner of SODO since the end of 2022. The merger with the transmission system operator is the next step in taking over the operations of the electricity distribution network operator.

Since its establishment, there has been political and expert concern that SODO is essentially an unnecessary entity, as all concrete tasks related to the distribution network are actually performed by electricity distribution companies

SODO was established due to EU legislation that mandates strict separation of distribution from marketing and production activities. Since electricity distributors are also owners of electricity sales companies, a special additional legal entity was established. If the electricity distribution companies were to sell these subsidiary companies, they could themselves assume the formal status of network operators. This is one of the objectives of broader organizational changes in the electricity system initiated by the Ministry of Environment, Climate and Energy.

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