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Gov't seeks to extend subsidies for troubled power plant

  Hungary's government wants to lobby Brussels for an extension of subsidies for troubled power plant Vértesi Erőmű, daily Népszabadság said on Saturday.

 

The coal-fueled power plant has been receiving about HUF 7 billion in subsidies a year since 2006 to support its restructuring. The subsidies expire at the end of this year, but the government wants to extend them until 2014, Népszabadság learned.

The subsidies, as well as about HUF 1 billion in monthly government support to keep the plant solvent, have failed to make Vértesi Erőmű profitable. The company filed for bankruptcy protection in August.

Shutting down the plant, which employs more than a thousand people, and recultivating the site would cost taxpayers at least HUF 40 billion, the paper said. (MTI-ECONEWS)