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Energy service providers could become partly non-profit

Analysis

Energy provision could be converted into a non-profit service for some retail consumers through the introduction of a consumption-based tariff system, daily Magyar Nemzet said on Friday.

The paper has learnt that this proposal has been suggested in connection with an earlier announcement of Prime Minister Viktor Orbán.

The paper has learnt that energy service providers have suggested to divide the centrally regulated unified tariff into three ranges: low-income households with low energy consumption could even pay less for energy than they currently do, consumers using an average amount of energy would make up the second group, while consumers with higher-than average consumption could be charged a higher tariff. Non-profit operation could thus be implemented in the first tariff range, the paper said.

Energy providers noted to the daily that making the utilities non-profit would not make energy cheaper as retail services are loss-making because of the frozen tariffs.

Orbán has recently said the government would convert public utilities services into a non-profit activity, citing the supply of energy to retail consumers as an example. The PM added he expected a major dispute with Brussels regarding the step.

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