Hungary To Hike Retail Gas Price 10% On Average As Of April
- 26 Mar 2010 3:00 AM
"The Hungarian Energy Office (HEO) has brought a decision about the rate of the next gas price increase, local daily Népszabadság reported on Thursday. According to the agreement reached late on Wednesday, local retail customers can expect to pay 10% more on average for natural gas as of 1 April. An official announcement is expected to be made soon.
As a result of the hike, the gross price of natural gas for retail customers will go up to around HUF 140 per cubic metre from the current HUF 127.
Small consumers will pay on average 9.98% more, the price for consumers between 20-100 cubic metres will rise by 9.5%. Those in the 100-500 cubic-metre category will pay 10.2% more, MTI reported.
The price of gas will rise on average 8.7% in Budapest, TIGÁZ is the only regional gas distributor raising the price more than 10%, by 12.1%, MTI learned. Népszabadság reported a 12.2% hike to be expected by TIGÁZ.
Gas suppliers with "universal service provider" status - who charge clients a fixed price for gas for a certain period of time, thus mitigating exposure to market forces - were seeking an average price hike of 17% in their proposals submitted for price changes to the HEO, according to earlier information.
HEO President Zoltan Matos said early in March that a price increase of HUF 16-17 per cubic metre of gas would be justified based on the used formula. However, changes to the way gas prices are calculated in force from 15 March reduced the scope of the increase. The change shaved as much as HUF 4 off the planned increases, industry insiders had told MTI.
Universal service providers can propose a gas price revision to the energy office quarterly."
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