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Consumers consider returning to district heating, E.ON

Two retail consumer groups are looking to return to their old service providers from the liberalized market: those who left the district heating market and those buying natural gas on the liberalized market, the business daily Világgazdaság said on Friday.

District heating will be the cheapest form of heating from next year, Főtáv CEO Lajos Kovács told the paper. VAT on district heating will be reduced from an already preferential 18% to 5% starting January. What makes it difficult for masses of consumers to reconnect is that most condominiums leaving district heating invested hundreds of millions of forints into buying their own boilers and other equipment.

Although the litigation affecting the gas trade company EMFESz is still underway, the position of its retail consumers is stable. Their discount-price contracts will remain valid even if EMFESz changes owners or transfers its operations to another company, the daily wrote. EMFESz communications advisor Igor Gallyas told the paper that many people have enquired about the company's situation, but the number of customers leaving has not increased. (MTI-Econews)