Proposal to redraw the energy landscape

Alica Árvay
January 28, 2011

A proposal by the head of the parliamentary group of the governing Fidesz, János Lázár, to cut state subsidies for renewable energy is being reviewed by National Development Ministry. The draft would alter agreements already negotiated by the Ministry whose opinion will be a crucial indicator where the energy policy is heading in Hungary.



The Hungarian Association of Renewable Energy Resources also submitted its appeal to the government regarding the isssue. The interest group was not the only one upset by the Lázár proposal. It was sharply criticized by others including the state secretary in charge of energy affairs in the Ministry of National Development, János Bencsik, who did not repress his opinion that this proposal is „professionally and politically unacceptable”. Bencsik says that if passed the draft law would upset agreements carefully negotiated by the Ministry and therefore would significantly increase district heating prices in several cities and towns in Hungary.

The proposal increases the original 15% cut in state subsidies for combined cycle power plants and plants fueled with renewable resources by further 10% from 2011, and with another 10% increase next year. Therefore from 2011, it would mean a subsidy reduction of 25%, and 35% from 2012.

The National Development Ministry says it will shortly publish an official statement on this issue. No doubt, energy policy will be in the focus of even greater attention and the question is whether there is a unified, thorough concept on the energy policy within the governing party.


Alica Árvay

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