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Restructured mandatory electricity purchase scheme to save state HUF 20-30 bln

The government expects to save HUF 20-30 billion with the restructuring of the state's mandatory purchases scheme for electricity, state secretary for climate and energy affairs János Bencsik said in an interview with Gazdasági Rádió.

From July, gas-fueled power plants will no longer be subsidized under the scheme. The state will guarantee the purchase of electricity from plants built by investors who have still not recouped their investments, but at market prices, Gazdasági Rádió said. Purchases of heat generated by combined-cycle power plants for residential district heating will be subsidized by the state, it added.

The restructured system would save the state HUF 20-30 billion.

The government is also working on a new system for purchasing energy generated from renewable fuels under which a quota would be set for purchases. If the quota is exceeded in any given year, no more parties would be allowed to join the system.

The government will decide this week on a program for supporting renovations of pre-fabricated concrete residential buildings constructed during the communist era, Bencsik said. Under the decision, the renovation of 20,000 homes -- about 60% in Budapest -- could start in the summer