Hungary Mandates 25% Cut in Gas Consumption at State Institutions

Energy Trade

Gergely Gulyás

Photo: Gergely Botár/kormany.hu

Hungary's government has decided to mandate a 25% reduction in gas consumption at state institutions and state-owned companies, Gergely Gulyás, the head of the Prime Minister's Office, said at a weekly press briefing on Thursday, according to a report by state news wire MTI.

Hospitals and nursing homes will be exceptions to the cut, Gulyás said.

He added that the government can maintain the regulated utilities price system for households, up to average consumption, but called on consumers to keep their gas and electricity use "within reason". He noted that government support for the regulated gas and electricity prices add up to a monthly HUF 150,000 per household. 

Thermostats at state institutions will be turned down to 18 degrees, he said, fielding questions.

Gulyás announced the launch of a scheme to help households who can switch to firewood and lignite from gas. A regulated price for firewood harvested from local forests will be set by the government, while forestry companies ensure people ten cubic meters of wood, enough to heat a household for the winter, he added.

The government will secure the state pre-emption rights for the purchase of lignite while raising the threshold for open-pit lignite extraction from 50,000 tonnes to as much as 280,000 tonnes, he said.

The government will draft an assistance program for SMEs in energy-intensive industries that extends to both gas and electricity, he added.

He said the government is negotiating with local councils and will provide support where it can, but added that the "primary task" is for everybody to manage the higher energy costs by saving on consumption.

Gulyás noted that Hungary's gas reserves are 65.4% full and contain enough gas to supply the entire country for 81 days. The volume is sufficient to supply households alone for a period of 175 days, he added.

Watchdog Fines UniCredit Bank Hungary for Regulatory Shortfa... MNB

Watchdog Fines UniCredit Bank Hungary for Regulatory Shortfa...

Hungary to Address Future of Cohesion Policy During EU Presi... EU

Hungary to Address Future of Cohesion Policy During EU Presi...

Cordia’s Marina City Project Begins Residential

Cordia’s Marina City Project Begins

Budapest Airport Wins 'Best Airport in Eastern Europe' for 1... Awards

Budapest Airport Wins 'Best Airport in Eastern Europe' for 1...

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.