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Power plant puts off upgrade over crisis tax losses

Power plant operator Budapesti Erőmű Zrt has given up a complete and extensive upgrade of its Kelenföldi Erőmű asset, business daily Világgazdaság reports.

The company’s entire long-term development budget has been consumed by the introduction of a crisis tax on the energy sector as well as the drop in regulated prices of energy.

The cancellation of the investment will entail that, opposed to the plans, the price of produced district heating will not be reduced by 5-6%. The company stressed that a lasting drop in consumer prices could only be achieved through technological upgrades, which the current regulatory environment makes extremely difficult. (BBJ)