The Workgroup on reducing public utility charges including gas and electricity, water, sewage, refuse collection and chimney sweeping, held its first session today.

According to Mayor of Debrecen Lajos Kósa, a member of the Workgroup and Vice President of the Fidesz party, the goal is a 10 percent reduction, although the position of service providers must also be taken into consideration.

Mr. Kósa declared that in case of water rates, the 10 percent reduction would be achieved primarily through the overhauling of the service structure and the inclusion of smaller public utility companies within a united system. He pointed out that there are currently 350 public water providers resulting in a disintegrated structure with higher costs. Lajos Kósa expects that there will be around 30 water supply companies when work is complete.

Regarding waste management, he stated that due to different levels of use, in certain places such as villages or suburban areas it may be justified for providers to charge based on the actual amount of waste.

A final proposal on the latest 10 percent reduction in utility charges may be presented to the cabinet in April-May. Fidesz parliamentary group leader Antal Rogán declared that the new reduction of public utility charges should be implemented from July.

The mayor of Csepel pointed out that it is important that the providers remain viable and no jobs are endangered, and accordingly negotiations will begin with the owners of public utility providers, local authorities and with trade unions.

Minister of State János Fónagy, who is also a member of the Workgroup, emphasized the importance of simplified invoicing adding that the public should see how much they have consumed and how much their burdens have been reduced. He reminded that a decree has already been issued about the transparency of electricity and gas bills and similar action is expected to occur in the case of other public utility services.

He also stressed that the reduction in public utility charges does not endanger the development and maintenance required for quality public utility services.

(Ministry of National Development)