On 12 December, the Government will approve an agreement on the purchase of E.ON's gas business in Hungary, Minister of State heading the Prime Minister's Office János Lázár said on Thursday.

Under the agreement, E.ON will transfer its gas business units to MVM Hungarian Electricity Ltd within the framework of a contract on the sale of shares to be finalised by 15 December 2012 and signed by 31 January 2013, he added. To further strengthen Hungary’s energy security, the Government has also taken the necessary measures to ensure government control over strategic and commercial natural gas storage units, he added. The Minister of State noted that this step is not only important because it ensures appropriate reserves for the winter months but also because it allows the state to buy gas during periods when prices are lower.

As a result of the above-mentioned measures, Minister of State Lázár also announced a 10% reduction in household gas and electricity prices as of 1 January 2013. He emphasised that this decision is final, with only minor technical details left to settle and will affect 3.8 million households. The Minister of State pointed out that 76% of the 4 million Hungarian households use gas heating, adding that families can save anywhere over hundred thousand forints annually, while district heating will also be favorable affected by the measure. He stated that they are working on finding a way to prohibit energy companies burdening their shortfall on industrial consumers.

The Minister of State highlighted that for example in Germany, families spend approximately 6% of their monthly salaries on utility bills, while in Hungary this number is 20%. He added that gas and electricity prices rose by 200% between 2002 and 2010. Eurostat data from 2011 also shows that electricity and gas prices for household consumers in Hungary are the second highest within the EU.

(Prime Minister's Office)