http://www.portfolio.hu/en/economy/concealed_study_shows_hungarys_nuclear_deal_with_russia_causing_massive_losses_paper.27340.html

Concealed study shows Hungary's nuclear deal with Russia causing massive losses - paper
February 7, 2014, 2:10 pm

Hungary’s government does not want to disclose the detailed estimates for the Paks nuclear reactor construction project because these forecast rising electricity prices and massive losses, local daily Népszabadság reported on Friday.


Changing agenda

The newspaper reminded that the expansion of the Paks Nuclear Power Plant was oddly taken off the agenda of a meeting of Parliament’s Commission on Sustainable Development on 10 December, as the government majority argued the discussion of the matter was not timely. Then members of the commission received an invitation for a meeting on 16 December that said they would be informed about measures to be made to maintain the capacities of the Paks NPP.

<snip>

The paper said the cancellation has to do with the assumption that "revealing MVM’s figures would have caused disturbance even among governing party MPs before the final vote on bill of the Orbán-Putin agreement."

Bad deal?

It added the report for the MVM does not paint a positive picture on the project because "in case of a 2,000 billion forint investment cost - if the state-owned energy company finances it from its own resources - would result in a producer price of 22 forint per kilowatt hour in the new blocks. At HUF 3,000 billion this would lead to a HUF 33 per kWh electricity price, which is obviously unacceptable in view of the HUF 16 per kWh free market price."

According to the cited study, if capital costs did not exceed HUF 3,000 bn and the interest expenses and related costs of the development (network development, new reserve block, etc.) were to be paid by taxpayers, the production price would still come in at HUF 25/kWh. This would boost local electricity prices by more than 10% and - including the accompanying investments - cause losses to the tune of HUF 1,000 billion.

<snip>