Slovakia could punish energy profiteers

Slovakia's main energy firms are run by foreign utilities after a massive privatisation spree by the previous centre-right government earlier this decade.

Italian company Enel has a 66 per cent stake in the country's electric power utility, while Germany's E.ON Ruhrgas and France's Gaz de France own 49 per cent of the Slovak Gas Holding company.

Mr Fico said: "This is not a false threat, this is a real thing," pointing out that the Slovak constitution allows for the expropriation of private property if the interests of the Slovak people are threatened.

Retail energy prices are on par with those in the neighbouring Czech Republic, at 2.84 koruna (1p) per kilowatt-hour, but are rising.

The main energy companies have said that prices will have to increase due to the rising cost of oil.

But Mr Fico said that they only want to boost their profits, saying: "Energy prices in Slovakia must correspond with the purchasing power of the Slovak people. We are still far from the average standard of living in the EU."

Since taking power two years ago, Mr Fico's government has adopted a law banning private health insurers from keeping profits and has threatened to punish retailers if the cabinet deems their price increases unjustified after Slovakia adopts the euro in January 2009.