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Gov’t wants centrally set price on district heating

A House committee has passed a proposal allowing the competent minister to determine a centrally set tariff for district heating.

The recommendation for the figure would be submitted by the Hungarian Energy Office (MEH) each year by August 31, having processed input from the affected companies and industry players.

A government representative said the purpose of the motion is to introduce a unified tariff that also makes district heating competitive with other alternative solutions.

The measure was criticized by the political opposition MPs on the panel saying it would infringe on standing contracts between municipal governments and their respective heat providers. As such, changing the pertinent regulations could lead to serious conflicts.

Chairman of the committee Antal Rogán admitted that the process will be difficult and will put the MEH in a tough spot, but the current intertwined nature of the system is no longer tolerable, since it does not serve the best interests of the consumers. (BBJ)