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Regional electricity distributor EDF DÉMÁSZ, servicing South-Hungary will decrease the average price it charges to retail clients for its services as a universal service provider by 7.4% on July 1, the company informed MTI on Thursday.

Power companies act as "universal service providers" when they provide electricity to households, small consumers and public institutions using a state-controlled price structure, thus mitigating exposure to market forces.

On June 15 parliament approved an amendment of Hungaryʼs electricity law freezing the price of power until the publication of a decree on a new pricing mechanism and granting the relevant minister the right to establish introducing a maximum electricity price. Both the price freeze and the new maximum price applies the retail price charged for the universal service and has not effect on the liberalized market.

The Hungarian Energy Office (MEKH) announced on June 15 that household electricity prices would drop on July 1, reflecting costs and a retroactive accounting of savings reached compared to the price margin applied for 2009. (MTI-ECONEWS)