Good news for residential users, because according to the government’s plans, compared to the district heating service fees valid on September 30, 2024 They will have to pay a 3.3% lower fee from October 1. This price reduction applies to the highest official price, which cannot be exceeded in the future either – the Ministry of Energy now finds out from its draft submitted for social consultation.
The plan for a 3.3% district heating utility reduction for the population starting in October is surprising from the point of view that the deficit would increase by HUF 140 billion in an already strained budget situation this year. With this step, the financial burdens of around 650,000 households may be slightly reduced, which may push down the feeling of inflation, and the increase in available monthly income may even slightly increase household consumption and, indirectly, VAT revenues. It is conceivable that this, in part, and preparation for the 2026 elections, were two important driving forces behind the decision.
According to the amendments, in the case of separately managed institutions, such as hospitals or schools, the self-cost heat fees to be paid to district heating providers will be determined.
Based on the new regulations, such institutions will pay 4.2% higher fees than the fees valid on March 31, 2011.
If a new district heating provider takes over the existing service area, or if a separately managed institution joins, they may be charged up to 30% higher than the cost-effective heat fee. This rule comes into effect especially in the case of newly established institutions where there was no district heating service until now.
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The new regulation would strictly regulate the profits of district heating providers. For providers that
By December 31, 2024, new facilities utilizing renewable energy sources or producing high-efficiency thermal energy will be established, their profit factor will be 4.5%.
For other service providers, this is the profit factor it can be up to 9%but not for service providers working with energy efficiency investments it’s only 2%.
The decree also modifies the district heating support system. The subsidy rules, which have been in place since 2011, are being updated to better align with today’s market conditions. The basis for calculating the subsidies is determined according to a new table, which can be found in the annex to the decree.
A according to the impact study sheet the above changes mean a budget deficit of HUF 139.4 billion this year alone, and a total of HUF 289 million in the following years.
The new regulation therefore seeks to reduce residential prices and encourage environmentally friendly energy use, while setting stricter conditions for district heating providers.
The cover image is an illustration. Cover image source: Getty Images
Source: www.portfolio.hu
