The government of Slovakia has decided to revoke the leasing contract of the 720 MW Gabcikovo hydropower plant to the national power utility Slovenske Elektrarne (SE, 66% owned by Enel), claiming that Slovenske Elektrarne withheld key information on the plant and delayed maintenance. The Gabcikovo hydropower plant was commissioned in 1992 on the Danube River and was spun off from Slovenske Elektrarne in 2006, when Enel acquired a majority stake in the utility. However, Slovenske Elektrarne retained the right to offtake the entire production for a period of 30 years from March 2006 (leasing contract); SE had to pay to the new owner of the plant, state-owned Vodohospordarska Vystavba, 65% of the revenues from the sale of Gabcikovo generation and annual fees. Tensions with the government over profits and maintenance started in 2007. The revocation of the contract is likely to complicate the sale by Enel of its majority stake in Slovenske Elektrarne.
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