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Gov't to regulate price of district heating

Hungary’s government will regulate the price of district heating for households and special institutions, the Development Ministry said on Friday.

Hungarian lawmakers on March 16 passed legislation to cap the price of district heating from April 15. The price will remain at the current level, which was frozen by the government on March 31, until Development Minister Tamás Fellegi, who is in charge of energy policy, changes it, the statement said.

The Association of Hungarian District Heating Providers, as well as several local government have criticized the government's proposal to control district heating prices, arguing that it would cause losses of several hundred millions of forints to district heating companies. Budapest mayor István Tarlós in February said a price ceiling could cause the instant collapse of Főtáv, the capital's main district heating provider.