Hungarian government to cap prices set in companies' power contracts (updated)

Richter Gedeon Vegyeszeti Gyar Nyrt

19/06/2023 10:45

(Adds more detail)
    By Boldizsar  Gyori
       BUDAPEST, June 19 (Reuters) - Hungary's government will
intervene in power contracts agreed by companies last year,
introducing a price cap on the fee firms pay for power in three
key sectors, the Prime Minister's chief of staff said on Monday.
    The government will also halve the windfall tax imposed on
drugmakers if they invest in research and development, Gergely
Gulyas told a briefing.
    From July 1 the maximum a company will have to pay for 1
megawatt will be 200 euros ($218.46), Gulyas said, adding that
the measure would cost the state around 40 billion forints
($116.89 million).
    The price cap will apply to an estimated 5,000 companies in
the processing industry, accommodation providers and the
warehouse and transport industry. 
    In return the government expects these companies to not
increase their prices until the end of the year. They will be
monitored by the Hungarian Chamber of Commerce and Industry,
Gulyas said.
    The tax on pharmaceutical companies will be further reduced
if they spend on research and development or they expand, the
minister added. 
    

($1 = 342.2000 forints)
($1 = 0.9155 euros)

 (Reporting by Boldizsar Gyori, Editing by Louise Heavens)
 ((Boldizsar.Gyori@thomsonreuters.com;))