A decree published by the Minister of Economy and Transportation on Tuesday re-introduces a maximum price of electricity to be sold to state-owned electricity wholesale company Magyar Villamos Művek (MVM).
Parliament decided in February 2006 to modify the Electricity Act amended by the previous government, reintroducing legal regulation of electricity producer prices sold to state-owned MVM. The amendment does not affect liberalized sales on the deregulated market. Out of the two regulated fees, the energy fee, meant to cover fuel costs, is practically in line with the respective fee set in the existing contracts between MVM and power plants.
The so-called standby fee, covering overhead costs and profits will be, however, decreased at four power plants compared to the level calculated on the base of their respective long-term contracts. The 2005 operational profit on assets at the Mátrai, Csepeli, Tiszai and Dunamenti power plants was more than the so-called justified 7.1%, so their standby fees will be reduced compared to contract fees by the decree, Hungarian Energy Office (MEH) told Econews. (Mti-Eco, Népszava)