PM’s office not suprised by Austria’s objection to Paks
The Hungarian Prime Minister’s Office said it was not surprised by Austria’s formal objection to the European Commission yesterday over plans to the upgrade the Paks nuclear power plant, Hungarian news agency MTI reported.
The PMʼs Office said yesterday that Austria’s response to the Paks upgrade is similar to how it reacted to an investment made in the Hinkley Point nuclear power plant in the United Kingdom, whereby it contested in court a decision made by the EC on state aid, MTI reported.
The Austrian government’s key concern regarding the Paks upgrade is that the project received “unacceptable state financing” for a non-sustainable technology, according to MTI. The Austrian government reportedly said it objects to the production of nuclear energy and does not believe that a nuclear power plant could ever be profitable given the many security and safety concerns, namely the effective disposal of nuclear waste.
Austria also expressed its concern that the project could lead to a “distortions on the internal electricity market” and push out players in the sustainable energy sector.
Hungary contracted Russian nuclear firm Rosatom to build two new reactors at the Paks plant for €12.5 billion, with €10 billion in financing provided by the Russian state. The Hungarian government argued that the project complies with the market economic investor principle (MEIP), a key EC criterion for assessing state aid, according to an earlier report from MTI.
In a report issued on January 12, the EC disagreed with the Hungarian governmentʼs assessment saying: “Hungary has not provided sufficient information on whether the investment is profitable on economic terms, taking into account the allocation of risks under the contract, and expectations on future revenues (based on future electricity prices)”.
MOL Shareholders Approve Dividend of Around HUF 250/Share
Gov't Awards HUF 6.5 bln of Subsidies to SMEs in Underdevelo...
Hungary's Largest ESG Consultancy Formed by Merger of EY, De...
Liz & Chain Rooftop Bar Debuts Sustainable Cocktails
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
