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Hungarian government buys gas with brutal high euro loans
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The Hungarian government has decided to create a special reserve of natural gas. To do so, it would be willing to take out a huge euro loan.
Creating a huge gas reserve
The Fidesz government wants to build up a huge stock of natural gas. A decree to this effect was published in the Hungarian Gazette. The maximum size of the special natural gas reserve is 7,811,000 MWh.
The decree was signed by Minister of Industry and Technology LĂ¡szlĂ³ Palkovics. The government will also take out a euro loan for the creation of a special gas reserve, up to a maximum of €1 850 million. But gas cannot be bought without a second thought. The maximum purchase price is the price calculated on the basis of market prices at the time of the contract, including system charges and the related price-fixing costs up to the virtual trading point of the domestic gas system, napi.hu writes.
In practice, this currently translates into an exchange rate of €210/MWh, according to CEEGEX. The cost does not include system charges. The regulation comes into force on Friday.
One can’t help thinking that on the surface the government is trying so hard to make it look like they’re in control and know what they’re doing. Underneath, however, one feels as though they’re running around like headless chickens. Blind panic.
Here’s the worrying statement: “The Russians might have an increased price, but politically they are closest to the Orban government”.
Since our tax payer money will be used to fund these loans – where would the difference in price go, exactly? Protecting Hungarian Families? Asking for a friend!