June 24th, 2013

Government to consider more utility fee cuts

The energy and public utility regulations office MEKH is examining the possibility of further utility fee cuts and will submit a proposal to the government on the results, the office’s incoming chairman told Monday’s business daily Vilaggazdasag.

MEKH was set up on March 18 as the successor of the Hungary Energy Office and Lajos Dorkota will be its head for seven years starting on July 1, the paper said.

Dorkota said among the office’s new tasks is to gather data and prepare calculations to quickly and efficiently support the government’s public utility fee cut scheme. The office will continue to check if the service providers implement the cuts stipulated by law, if they properly display these changes on the bills to consumers and if this is not the case, the office will fine them, he added.

He said new service providers for water supply are currently being selected and a 10 percent fee cut is under preparation in this area, too.

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  • Guru

    A few days ago, people came to my house to collect signatures in support of the proposed utility cut v2.0, and I signed gladly. What I would be even happier about, however, is to find all the people who aren’t actually for this idea, so that when it passes, they’ll still get to pay their old amount as I will gladly sacrifice another 10% from my bill for them to pay.

    So, as an example, let’s say I go from paying 10,000 for garbage disposal (obviously doesn’t cost 10,000) to paying 9,000 after the 10% cut. I will gladly personally establish a system in which I dish out the rest of the 9,000 to be paid by people who didn’t want the utilities cut. They still get to pay their old amount and I get to pay virtually nothing! Everybody wins! :)

    • MagyarViking

      “Everybody wins!”

      What people like yourself seem hard to understand is that most of these services are done via Public owned companies, so instead of paying this fee, the tax will just go up, so people who does not pay anything today, will have to pay tomorrow…

      It is just about smoke and mirrors, but you guys just love the entertainment

      • Hungarian

        cost cutting is an everyday routine in any business. Live with it.

        • Curious George

          They cut revenue streams, not expenses. Since you are based in Japan, you should easily understand the concept of kaizen, or continuous improvement. Well, these companies haven’t improved on any dimension so far, so Viking is correct when he says that taxes will just go up.

          • Hungarian

            継続改善 (keizoku kaizen) or shall we say continuous improvement is indeed part of the everyday life in Japan.

            This is something companies operating in Hungary should adopt as well.

            I have a hard time to believe that this government would simply shift cost to public burden when it is explicitly aiming to reduce public burden.

            Would they be that simplistic and transparent to begin with in their political strategies?

            That would amount to a government stepping out of a manga book.

          • Curious George

            I have a hard time to believe that this government would simply shift cost to public burden when it is explicitly aiming to reduce public burden.

            I don’t. The nationalization of the pension fund shows that this govt is willing to burden the state to no small degree.

          • Hungarian

            I don’t see why privatization was necessary on the first place. In Japan pension funds are managed by the state.
            Remember a private company may fail and then who is going to pay the pension?
            It is a huge risk to average joe.

      • Guru

        Not really, since the problem before was corruption and theft in these businesses. Since a crackdown has begun, more money is left over from these processes, so less has to be paid.

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