Decree “represents natural gas nationalization”

Competition

The Hungarian Energy Regulatory Office (MEKH) published a decree on Wednesday that prohibits gas distributors from accounting network losses as a cost when calculating usage fees.

In a statement on Thursday, MEKH said the decree would prevent gas distributors from passing on the cost of network theft and technical losses to consumers. The measure will save consumers HUF 10.5 billion (approximately $48.8 million) a year, the office said in response to state news agency MTI.

In analyzing the decree, local news portal Index.hu reckoned that the measures could cost Hungary-based utility companies up to HUF 13 billion per year.

An unnamed source from a utility company speaking on condition of anonymity was quoted in the same article (hilariously entitled Energy companies awaken with severed horse’s head) as stating that “this is no longer part of the utility tariff cuts [and is instead] the preparation for the nationalization of gas distribution firms.”

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