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Government mulls further utility price cuts

History

The government is making preparations to further reduce utility prices, a decision to be made as part of a strategy to maintain the results of earlier utility price cuts in the energy sector, Hungary’s Development Minister Miklós Seszták told weekly Figyelő today, without commenting on the size of the prospective cuts.

According to the minister, the size of the reduction depends on factors such as future gas prices, as well as the outcome of an infringement procedure currently ongoing against Hungary, initiated by the European Commission, the paper reported.

Sesztákʼs announcement is not unexpected as Fidesz MP Szilárd Németh said at the beginning of the year that the government would continue to cut utility prices, with the reduction potentially reaching a double-digit figure.

Utility price cuts by the Hungarian government in recent years have resulted in service providers generating losses, many even deciding to abandon the country, while the country’s energy giants - oil and gas company MOL and the Hungarian Electricity Works (MVM) - are required to deal with the high demand to satisfy the country’s energy needs.

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