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Increase of traction energy prices in Hungary

29.12.2021

Dear Business Partner,
 
On December 21st 2021 we have informed you about the planned increase of Hungarian traction energy prices. As we have stated, the increase of 300%, maybe even more, is an unpredicted, unacceptable and disastrous fact for the whole railway sector having a major impact on our cost calculation.

In our preliminary letter from October 2021, we presented our calculations and offered our 2022 pricing. As you can remember, at that time we have already informed you that the increase shall be at 10 %, on the other hand, based also on our continuous investment into the rail cars, modern locomotives and optimalization on the terminal production, we applied an average around 5%.

The unpredictable fact of the traction price increase in Hungary caused that our calculations completely fell apart.

Unfortunately, till now we have no further information, only the one presented on December 21st 2021. The discussions with the state authority, Hungarian infrastructure operator MÁV are still in process and the outcome is still unknown. We have received only a notice that further information will be presented to the sector in January 2022.

Based on this fact we would like to inform you that we will keep all the rates and conditions for 2022, as they were offered and discussed, till January 31st 2022.

This condition is valid for:

  • All Adriatic routings to all countries,
  • All routings to and from Hungary via our Budapest Csepel service
  • All dedicated services running to and from Hungary as well as in transit via Hungary
  • All empty repositioning / depot feedings via rail to and from / in transit via Hungary

We hope that we can provide you with further details at the beginning of January 2022.

We are sorry for all these inconveniences caused, but these are unfortunately not below our influence at all.

Due to this unpredictable situation, we will have to adjust also our General Conditions 2022 for an additional waiver under the point 3.5, taking the October 2021 as a rate level as a baseline:

METRANS reserves the right to accommodate the prices unilaterally in case of bad economic conditions:

  • devaluation of EUR against CZK/PLN/HUF by more than 10 %;
  • fuel price increase by more than 15 %;
  • inflation more than 7 %;
  • traction electricity increase according to the transiting country by more than 15%.

In case of any further questions, please do not hesitate to contact us.
 
Best regards,

METRANS Team