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Bakonyi Power Plant threatens to pull plug on MAL

Bakonyi Power Plant said again on Tuesday that it soon will be forced to stop supplying alumina maker MAL because of a failure to pay its bills.

Troubled MAL - fined HUF 135 billion last year for a toxic sludge spill at its plant in Ajka (NW Hungary) in October 2010 - owes Bakonyi Power Plant HUF 1.7 billion. Halting deliveries to the plant would force it to shut down.

Hungary's government said in September that it would make an offer to buy Bakonyi Power Plant to preserve jobs at MAL as well as heating in Ajka.

MAL employs 1,100 of people.

Bakonyi Power Plant said on Tuesday that government bodies had promised it at talks full reimbursement for energy supplied to MAL.

Bakonyi Power Plant said a recent court decision ruling illegal the withdrawal of one-third of the plant's bioenergy quota by the Hungarian Energy Office (MEH) ended one dispute between it and the government.

The withdrawal of the quota cut Bakonyi Power Plant's revenue by HUF 2.5 billion-3 billion a year.

Bakonyi Power Plant is owned by Euroinvest, a holding of construction industry magnate Sándor Demján.