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Hungary: new price setting practices for district heating

Hungary
13/11/2008
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New price setting practices for district heating are to be introduced, including a requirement for heat producers and district heating companies to publish sensitive pricing information.

For the sake of transparency, district heating companies will need to publicly disclose the arrangements they have entered into with heat producers for the purchase of heat, and with the local governments for the provision of public utility services. All pricing information must be disclosed apart from some sensitive technical data.

In addition, district heating prices will no longer be able to be approved by local governments without prior review by the Hungarian Energy Office. The Energy Office will be entitled to check whether the prices proposed by the district heating company comply with the new pricing principles and challenge them if it disapproves.

District heating companies may also initiate their own price review at any time to ensure they comply with the pricing principles.

The legislation has already been passed by Parliament and, unless vetoed by the Hungarian Head of State, will come into effect on 1 July 2009.

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