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Gas Price Hike Of 5.8% In Hungary Soon

Gas Price Hike Of 5.8% In Hungary Soon
"The price of gas will be raised by 5.8% on average for household consumers and by 5.2% on average for non-household consumes as of 1 April, Hungary's Ministry of Economic Affairs has announced on Thursday.


The ministry pencilled in 1 July 2008 as the date of market opening in its draft law on natural gas supply and the Hungarian Energy Office has made its proposal as to the extent of gas price hike in the second-quarter bearing this date in mind.

However, Parliament first addressed the draft law only in its spring session, which means the total liberalisation of the gas market may be initiated on 1 January 2009 at the earliest.

“Thanks to this, there is more time to settle the outstanding debt vis-á-vis the public utility wholesaler, which allows a smaller increase in the regulated price of natural gas than the earlier proposal of the Energy Office," the ministry said in a statement.

The ministry added that the price hike would imply HUF 800 additional monthly cost for an average household, with 1,650-cubic-metre annual consumption, which does not seek gas price compensation."

Source: Portfolio Online Financial Journal


29.02.2008

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