In a statement issued late Monday, the Prime Minister's Office said the decision was taken after talks with local council authorities who accepted invitations to meet with ministerial commissioner György Balla and government commissioner Zsolt Láng.
Local councils have been asked to draft energy savings plans as a condition for the support, it added.
The support is available to 138 municipalities and 17 of Budapest's districts.
The government earlier earmarked subsidies for utility bills for settlements with populations under 10,000.
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