Hungarian Gov'nt Announces Energy State of Danger

The Hungarian government has declared an energy emergency and adopted a seven-point action plan, as part of which it will ensure gas and electricity prices limited by the cuts in the electricity and gas bills will only be applied only up to the average household consumption from August 1, this year, Gergely Gulyás, Minister of the Prime Minister's Office, announced at the Cabinet briefing on Wednesday.

Points of the announced action plan are as follows:

– increase domestic gas production from 1.5 billion to 2 billion cubic meters;

– Minister of Foreign Affairs and Trade Péter Szijjártó has been authorized to acquire additional gas reserves; the current gas reserves are said to be enough for a quarter of the year, but more is needed;

– the government imposes export ban on energy carriers and firewood;

– the government intends to increase coal mining as much as possible;

– all the units of the coal-powered Mátra power plant must be restarted as soon as possible; they must be put to use;

– the government has initiated the extension of the operating life of the Paks nuclear power plant;

– the capped utility prices will continue to be granted up to the average of residential consumption. However, as of August 1, households where the gas and electricity consumption exceeds the average, will have to pay more (for the amount exceeding the average use).