It turned out: the government tapped the Overhead Protection Fund because of the company’s electricity price ceiling

By RockedBuzz 3 Min Read

The Ministry reminds that the government has reduced the price set in the existing fixed-price electricity purchase contracts of companies or individual entrepreneurs whose main activity is manufacturing, accommodation services or storage (activities supplementing transport) for the second half of 2023. He achieved this based on the intervention in June the affected parties will receive an invoice for a maximum net electricity price of 200 euros per megawatt hour from the first of July, and the government will compensate them for the remaining part from the Overhead Protection Fund to the energy traders.

Sunday’s EM announcement describes in detail that based on the July energy consumption data, the ministry has already paid HUF 4.8 billion in compensation to 15 energy traders, the source of which was that the government recently regrouped HUF 32 billion from the Overhead Protection Fund to the Ministry of Energy for the part of these expenses to be paid out this year. The recent redeployment did indeed take place, we wrote about it based on the mid-September Gazette, but then the only thing that emerged from the decision was that the redeployment was made in favor of the centrally managed appropriation “Emergency utility support for industrial consumers”, which, according to them, served to finance the electricity price ceiling.

When announcing the program and still now, the ministry says that the six-month price ceiling consumes about HUF 40 billion in budget resources, i.e. this is how much support the five thousand companies concerned will receive along with electricity price discounts. The end of the ministry’s announcement contains an important message that after last year’s high-price fixed-price purchase, “in the current price environment, consumers in the competitive market can already take care of their electricity supply next year on significantly more favorable terms.”

Energy Investment Forum 2023 – With the professional support of MEKH
Energy procurement opportunities and the outlook for electricity prices will also be discussed in detail at Portfolio’s Energy Investment Forum conference on October 5. More details:

The other day, the ministry halved district heating prices for businesses and municipalities again:

Cover image source: Getty Images

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