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Amendment would scrap subsidies for electricity from combined cycle power plants

Parliament will vote on Monday on an amendment that would eliminate subsidies for electricity, but not heat, generated by combined cycle power plants, energy state secretary János Bencsik said in an interview on public television.

The amendment would restructure the mandatory energy purchase scheme, under which combined cycle power plants and companies that generate energy using renewable fuel are guaranteed a market and a subsidized price for their output.

An amendment submitted to Parliament in January by Janos Lazar, head of the parliamentary group of governing Fidesz, would have cut the guaranteed purchase price for all energy generated by combined cycle power plants and plants that use renewable fuel by 25% from 2011 and by 35% from 2012.

Bencsik confirmed that district heating prices will be centrally regulated. The prices will be frozen until the mandatory energy purchase scheme is restructured, he added.