Budapest to Get Cheap Electricity
- 2 Dec 2021 11:49 AM
- Hungary Around the Clock
The city of Budapest is buying electricity at market prices for December, but will join the government-regulated market, where prices are lower, on January 1, mayor Gergely Karácsony announced on Facebook on Wednesday.
Following the bankruptcy of the previous supplier, energy trader JAS, in the autumn, the city is purchasing electricity needed for public lighting and public utility companies from Elmű from December 1, and from MVM from January 1.
JAS failed to purchase in advance all of the electricity it already sold, so soaring spot prices forced it to bankruptcy and it has given back its licence.
As a result, energy and utility authority MEKH appointed Elmű as the new service provider.
The energy law allows local governments to switch back to the regulated market, and Budapest will do so, purchasing electricity for Ft 31 per kWh from January rather than the present price of Ft 50-70 per kWh on the free market.
XpatLoop Media Partner
LATEST NEWS IN current affairs