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E. securing supply, introducing competition in the energy markets and diversifying energy sources. Continued emphasis on the energy demand side is indispensable. Final energy consumption has been quite stagnant in past years, largely owing to the economic restructuring in which several energy-intensive industries have shrunk and less energyintensive industries have emerged and grown. However, economic restructuring is likely to slow down, which will lead to an increase in final energy consumption, following the gradual growth of GDP per capita.

District heating companies operating under the authority of municipalities must purchase heat at artificially high official prices while their tariffs for selling heat to their customers are kept low for social and political considerations and in the context of strong competition from natural gas suppliers in the residential sector. Gas prices are official prices set by the Ministry of Economy and Transport, which have also been kept artificially low (see Chapter 7). The 1993 resolution on energy policy and the 1999 document entitled “Hungarian Energy Policy Principles and the Business Model of the Energy Sector” state that it is necessary to improve the district heating system, to modernise it and to make it competitive.

Went bankrupt during the transition from a centrally planned to a market economy. , resulted in a decrease in the final energy intensity of manufacturing. The main energy efficiency measures for industry comprise the following: Energy Audits Within the framework of the Széchenyi Plan, non-refundable grants are provided for energy audits in companies with energy costs of HUF 30 million per annum or higher (approximately US$ 130 000). In 2001, 29 company audits received a total amount of HUF 110 million financial support (approximately 16.

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