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Ministry’s Amendment Proposal Puts End to Dispute on Utility Fee Cut Scheme

MTI-Hungary Today 2020.09.30.

The ministry of innovation and technology said on Wednesday that Hungary’s dispute with the European Commission concerning its policy of reducing household utility fees is being resolved via an amendment proposal submitted by the ministry.

The Court of Justice of the European Union (CJEU) ruled in July that Hungarian legislation prohibiting energy companies from passing on sectoral taxes and transaction duties to consumers does not violate EU rules. But the court also said Hungary must make sure energy companies have a legal route to contesting the way the energy authority calculates fees.

The government reduced the price of gas, district heating and electricity by 25 percent on average in recent years in order to reduce burdens on Hungarian families, the statement said.

In addition to the measures already taken, the government plans to maintain the reduction of fees paid by Hungarian families through different means, the ministry said, adding that its Climate and Nature Action Plan prioritises the need for households to use cheap, innovative energy.